Don't Ignore The Insider Selling In ANI Pharmaceuticals

We'd be surprised if ANI Pharmaceuticals, Inc. (NASDAQ:ANIP) shareholders haven't noticed that the Senior Vp & Head of Rare Disease, Christopher Mutz, recently sold US$375k worth of stock at US$57.70 per share. However, the silver lining is that the sale only reduced their total holding by 7.8%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for ANI Pharmaceuticals

The Last 12 Months Of Insider Transactions At ANI Pharmaceuticals

The President, Nikhil Lalwani, made the biggest insider sale in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$67.13 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$55.69). So it may not shed much light on insider confidence at current levels.

ANI Pharmaceuticals insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of ANI Pharmaceuticals

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. We usually like to see fairly high levels of insider ownership. It appears that ANI Pharmaceuticals insiders own 7.9% of the company, worth about US$86m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At ANI Pharmaceuticals Tell Us?

An insider sold ANI Pharmaceuticals shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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 ANI Pharmaceuticals that deserve your attention before buying any shares.

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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.