Some Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) shareholders may be a little concerned to see that the Independent Director, Matthew Fust, recently sold a substantial US$620k worth of stock at a price of US$50.88 per share. That's a big disposal, and it decreased their holding size by 45%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Ultragenyx Pharmaceutical
Notably, that recent sale by Matthew Fust is the biggest insider sale of Ultragenyx Pharmaceutical shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$47.66. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Insiders in Ultragenyx Pharmaceutical didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Ultragenyx Pharmaceutical Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Ultragenyx Pharmaceutical insiders own 3.9% of the company, currently worth about US$155m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Ultragenyx Pharmaceutical Insiders?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Ultragenyx Pharmaceutical and understanding them should be part of your investment process.
Of course Ultragenyx Pharmaceutical may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.