Those following along with Incyte Corporation (NASDAQ:INCY) will no doubt be intrigued by the recent purchase of shares by Herve Hoppenot, Chairman of the company, who spent a stonking US$1.0m on stock at an average price of US$77.37. While that only increased their holding size by 5.9%, it is still a big swing by our standards.
Incyte Insider Transactions Over The Last Year
Notably, that recent purchase by Chairman Herve Hoppenot was not the only time they traded Incyte shares this year. Earlier in the year, they sold shares at a price ofUS$110 per share in a -US$9.9m transaction. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$78.45. So it is hard to draw any strong conclusion from it.
Over the last year we saw more insider selling of Incyte shares, than buying. 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!
I will like Incyte better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Incyte insiders own 0.7% of the company, worth about US$127m. 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 Does This Data Suggest About Incyte Insiders?
It is good to see the recent insider purchase. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Incyte.
Of course Incyte 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, but not derivative transactions.
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