Insiders Could Have Profited By Holding onto Apellis Pharmaceuticals Shares Despite 15% Drop

Apellis Pharmaceuticals, Inc.'s (NASDAQ:APLS) stock price has dropped 15% in the previous week, but insiders who sold US$7.9m in stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$60.47 is still lower than the current share price.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Apellis Pharmaceuticals

Apellis Pharmaceuticals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Cedric Francois, for US$873k worth of shares, at about US$65.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$48.03. So it may not shed much light on insider confidence at current levels.

Apellis Pharmaceuticals insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Apellis Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders At Apellis Pharmaceuticals Have Sold Stock Recently

The last three months saw significant insider selling at Apellis Pharmaceuticals. In total, insiders sold US$4.8m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. Apellis Pharmaceuticals insiders own 3.6% of the company, currently worth about US$228m 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 Do The Apellis Pharmaceuticals Insider Transactions Indicate?

Insiders haven't bought Apellis Pharmaceuticals stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Case in point: We've spotted 3 warning signs for Apellis Pharmaceuticals you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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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