Insiders of Dechra Pharmaceuticals PLC (LON:DPH) would have made a tidy sum after selling UK£1.8m worth of stock at a high price

Last week, Dechra Pharmaceuticals PLC's (LON:DPH) stock jumped 4.0%, but insiders who sold UK£1.8m worth of stock in over the past year are likely to be in a better position. Selling at an average price of UK£43.25, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Dechra Pharmaceuticals

The Last 12 Months Of Insider Transactions At Dechra Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the MD of Dechra Veterinary Products for Europe & Executive Director, Anthony Griffin, sold UK£963k worth of shares at a price of UK£38.52 per share. That means that even when the share price was below the current price of UK£42.28, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 35% of Anthony Griffin's holding. The only individual insider seller over the last year was Anthony Griffin.

Anthony Griffin sold a total of 42.50k shares over the year at an average price of UK£43.25. 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!

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Does Dechra Pharmaceuticals Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Dechra Pharmaceuticals insiders own about UK£19m worth of shares. That equates to 0.4% 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 Dechra Pharmaceuticals Tell Us?

The fact that there have been no Dechra Pharmaceuticals insider transactions recently certainly doesn't bother us. Still, the insider transactions at Dechra Pharmaceuticals in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Dechra Pharmaceuticals has 1 warning sign we think you should be aware of.

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. 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.