Hikma Pharmaceuticals Sees Insider Stock Selling

From what we can see, insiders were net sellers in Hikma Pharmaceuticals PLC's (LON:HIK ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

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 Hikma Pharmaceuticals

The Last 12 Months Of Insider Transactions At Hikma Pharmaceuticals

The Executive Vice President of Corporate Development and M&A, Bassam Wael Kanaan, made the biggest insider sale in the last 12 months. That single transaction was for UK£886k worth of shares at a price of UK£20.25 each. So we know that an insider sold shares at around the present share price of UK£19.35. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Bassam Wael Kanaan.

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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Hikma Pharmaceuticals

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. Hikma Pharmaceuticals insiders own 2.2% of the company, currently worth about UK£96m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Hikma Pharmaceuticals Insiders?

It doesn't really mean much that no insider has traded Hikma Pharmaceuticals shares in the last quarter. Our analysis of Hikma Pharmaceuticals insider transactions leaves us cautious. The modest level of insider ownership is, at least, some comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Hikma Pharmaceuticals that deserve your attention before buying any shares.

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.