Quite a few Deciphera Pharmaceuticals, Inc. (NASDAQ:DCPH) insiders sold their shares over the past year, which may be a cause for concern. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Deciphera Pharmaceuticals
Over the last year, we can see that the biggest insider sale was by the President, Steven Hoerter, for US$471k worth of shares, at about US$15.37 per share. So we know that an insider sold shares at around the present share price of US$15.01. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Over the last year, we can see that insiders have bought 21.00k shares worth US$291k. But they sold 115.16k shares for US$1.6m. Over the last year we saw more insider selling of Deciphera Pharmaceuticals shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Deciphera Pharmaceuticals Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Deciphera Pharmaceuticals shares. In total, insiders sold US$276k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Deciphera Pharmaceuticals insiders own about US$9.4m worth of shares (which is 0.8% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Deciphera Pharmaceuticals Tell Us?
Insiders sold Deciphera Pharmaceuticals shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Deciphera Pharmaceuticals you should be aware of.
Of course Deciphera Pharmaceuticals 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.