Don't Ignore The Fact That This Insider Just Sold Some Shares In Aurinia Pharmaceuticals Inc. (TSE:AUP)

By
Simply Wall St
Published
July 31, 2021
TSX:AUP
Source: Shutterstock

We note that the Aurinia Pharmaceuticals Inc. (TSE:AUP) Chief Business Officer, Michael Martin, recently sold CA$87k worth of stock for CA$17.41 per share. On the bright side, that's just a small sale and only reduced their holding by 2.7%.

Check out our latest analysis for Aurinia Pharmaceuticals

Aurinia Pharmaceuticals Insider Transactions Over The Last Year

The insider, Chin-Kyu Huh, made the biggest insider sale in the last 12 months. That single transaction was for CA$36m worth of shares at a price of CA$23.67 each. 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 CA$16.76. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 65.23k shares for CA$1.0m. But insiders sold 1.65m shares worth CA$38m. Over the last year we saw more insider selling of Aurinia Pharmaceuticals shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
TSX:AUP Insider Trading Volume July 31st 2021

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).

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Aurinia Pharmaceuticals insiders own about CA$52m worth of shares. That equates to 2.4% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Aurinia Pharmaceuticals Tell Us?

It is good to see recent purchasing. On the other hand the transaction history, over the last year, isn't so positive. We don't take much heart from transactions by Aurinia Pharmaceuticals insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. So they seem pretty well aligned, overall. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Aurinia Pharmaceuticals. While conducting our analysis, we found that Aurinia Pharmaceuticals has 1 warning sign and it would be unwise to ignore it.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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This article by Simply Wall St is general in nature. 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.
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