Have Arrowhead Pharmaceuticals Insiders Been Selling Stock?

We'd be surprised if Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) shareholders haven't noticed that the Independent Director, Mauro Ferrari, recently sold US$493k worth of stock at US$56.39 per share. That sale was 14% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Arrowhead Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the Chairman, Christopher Anzalone, sold US$1.5m worth of shares at a price of US$11.76 per share. That means that even when the share price was below the current price of US$57.95, 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 3.5% of Christopher Anzalone's holding.

Insiders in Arrowhead Pharmaceuticals didn't buy any shares in the last year. 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!

View our latest analysis for Arrowhead Pharmaceuticals

I will like Arrowhead Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Arrowhead 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Arrowhead Pharmaceuticals insiders own 4.0% of the company, worth about US$313m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About Arrowhead Pharmaceuticals Insiders?

An insider hasn't bought Arrowhead Pharmaceuticals stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Arrowhead Pharmaceuticals. While conducting our analysis, we found that Arrowhead Pharmaceuticals has 2 warning signs and it would be unwise to ignore these.

But note: Arrowhead 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.