As Amicus Therapeutics, Inc. (NASDAQ:FOLD) gains 18%, insiders who bought last year may be wishing they had bet higher

By
Simply Wall St
Published
March 14, 2022
NasdaqGM:FOLD
Source: Shutterstock

Last week, Amicus Therapeutics, Inc. (NASDAQ:FOLD) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 18% last week, resulting in a US$392m increase in the company's market worth. As a result, their original purchase of US$250k worth of stock is now worth US$266k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Amicus Therapeutics

Amicus Therapeutics Insider Transactions Over The Last Year

The Independent Director Lynn Bleil made the biggest insider purchase in the last 12 months. That single transaction was for US$250k worth of shares at a price of US$8.74 each. That implies that an insider found the current price of US$9.29 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Amicus Therapeutics insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Lynn Bleil.

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!

insider-trading-volume
NasdaqGM:FOLD Insider Trading Volume March 14th 2022

Amicus Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Amicus Therapeutics

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Amicus Therapeutics insiders own 1.1% of the company, worth about US$28m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Amicus Therapeutics Tell Us?

The fact that there have been no Amicus Therapeutics insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Amicus Therapeutics and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for Amicus Therapeutics that deserve your attention before buying any shares.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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