Have Insiders Sold Hikma Pharmaceuticals Shares Recently?

We wouldn't blame Hikma Pharmaceuticals PLC (LON:HIK) shareholders if they were a little worried about the fact that Bassam Wael Kanaan, the Executive Vice President of Corporate Development and M&A recently netted about UK£886k selling shares at an average price of UK£19.69. However, that sale only accounted for 7.3% of their holding, so arguably it doesn't say much about their conviction.

View our latest analysis for Hikma Pharmaceuticals

The Last 12 Months Of Insider Transactions At Hikma Pharmaceuticals

Notably, that recent sale by Bassam Wael Kanaan is the biggest insider sale of Hikma Pharmaceuticals shares that we've seen in the last year. That means that even when the share price was below the current price of UK£20.88, 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. We note that the biggest single sale was only 7.3% of Bassam Wael Kanaan's holding.

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!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Hikma Pharmaceuticals

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Hikma Pharmaceuticals insiders own 2.3% of the company, worth about UK£104m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Hikma Pharmaceuticals Tell Us?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Hikma Pharmaceuticals makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Hikma Pharmaceuticals. In terms of investment risks, we've identified 3 warning signs with Hikma Pharmaceuticals and understanding these should be part of your investment process.

But note: Hikma Pharmaceuticals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.