Executive VP & Chief Commercial Officer Jeffrey Del Carmen Sold A Bunch Of Shares In Catalyst Pharmaceuticals

We wouldn't blame Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) shareholders if they were a little worried about the fact that Jeffrey Del Carmen, the Executive VP & Chief Commercial Officer recently netted about US$696k selling shares at an average price of US$22.89. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

Check out our latest analysis for Catalyst Pharmaceuticals

The Last 12 Months Of Insider Transactions At Catalyst Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the Executive VP, Steven Miller, sold US$3.1m worth of shares at a price of US$20.59 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$21.67. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 18% of Steven Miller's stake.

Insiders in Catalyst Pharmaceuticals didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Insider Ownership Of Catalyst 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. We usually like to see fairly high levels of insider ownership. Catalyst Pharmaceuticals insiders own about US$165m worth of shares (which is 6.3% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Catalyst Pharmaceuticals Insider Transactions Indicate?

An insider hasn't bought Catalyst Pharmaceuticals stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. But since Catalyst Pharmaceuticals is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. Every company has risks, and we've spotted 1 warning sign for Catalyst Pharmaceuticals you should know about.

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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.