Insider Spends US$399k Buying More Shares In Indivior

Those following along with Indivior PLC (LON:INDV) will no doubt be intrigued by the recent purchase of shares by Robert Schriesheim, Independent Non-Executive Director of the company, who spent a stonking UK£399k on stock at an average price of UK£6.78. That increased their holding by a full 275%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.

Check out our latest analysis for Indivior

Indivior Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Scientific Officer, Christian Heidbreder, sold UK£2.3m worth of shares at a price of UK£17.27 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of UK£7.00. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 183.10k shares for UK£1.4m. On the other hand they divested 534.47k shares, for UK£9.0m. In total, Indivior insiders sold more than they bought over the last year. The average sell price was around US$16.78. Insider selling doesn't make us excited to buy. But we note that the selling, on average, was at well above the recently traded price of UK£7.00. 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 Indivior 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. Insiders own 3.6% of Indivior shares, worth about UK£31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Indivior Insiders?

The recent insider purchases are heartening. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but Indivior insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. In short they are likely aligned with shareholders. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Indivior you should be aware of, and 1 of them shouldn't be ignored.

Of course Indivior 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 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.