Insiders Could Have Profited By Holding onto Ultragenyx Pharmaceutical Shares Despite 15% Drop

Ultragenyx Pharmaceutical Inc.'s (NASDAQ:RARE) value has fallen 15% in the last week, but insiders who sold US$2.3m worth of stock over the last year have had less success. Given that the average selling price of US$49.82 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Insider Transactions Over The Last Year

The Independent Director, Matthew Fust, made the biggest insider sale in the last 12 months. That single transaction was for US$620k worth of shares at a price of US$50.89 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$44.11). So it may not tell us anything about how insiders feel about the current share price.

Insiders in Ultragenyx Pharmaceutical didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Ultragenyx Pharmaceutical Have Sold Stock Recently

The last three months saw significant insider selling at Ultragenyx Pharmaceutical. In total, insiders dumped US$2.0m 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 Of Ultragenyx Pharmaceutical

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ultragenyx Pharmaceutical insiders own about US$137m worth of shares (which is 3.9% of the company). 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. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Ultragenyx Pharmaceutical you should know about.

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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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.