Even if it’s not a huge purchase, we think it was good to see that Lonnel Coats, the President of Lexicon Pharmaceuticals, Inc. (NASDAQ:LXRX) recently shelled out US$54k to buy stock, at US$1.35 per share. While we’re hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 45.7%.
Lexicon Pharmaceuticals Insider Transactions Over The Last Year
Notably, that recent purchase by Lonnel Coats is the biggest insider purchase of Lexicon Pharmaceuticals shares that we’ve seen in the last year. That implies that an insider found the current price of US$1.41 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it’s a good sign on balance, but keep in mind they may no longer see value. Happily, the Lexicon Pharmaceuticals insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 74000 shares worth US$94k. In the last twelve months Lexicon Pharmaceuticals insiders were buying shares, but not selling. The chart below shows insider transactions (by 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!
Insider Ownership of Lexicon Pharmaceuticals
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that Lexicon Pharmaceuticals insiders own about US$691k worth of shares. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Lexicon Pharmaceuticals Tell Us?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Lexicon Pharmaceuticals insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Lexicon 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, but not derivative transactions.
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