Executive VP & Chief Legal Officer Neena Patil Sold A Bunch Of Shares In Jazz Pharmaceuticals

We wouldn't blame Jazz Pharmaceuticals plc (NASDAQ:JAZZ) shareholders if they were a little worried about the fact that Neena Patil, the Executive VP & Chief Legal Officer recently netted about US$551k selling shares at an average price of US$145. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for Jazz Pharmaceuticals

Jazz Pharmaceuticals Insider Transactions Over The Last Year

In fact, the recent sale by Neena Patil was the biggest sale of Jazz Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$139. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Jazz Pharmaceuticals insiders didn't buy any company stock. 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!

I will like Jazz 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Jazz Pharmaceuticals insiders own 2.9% of the company, currently worth about US$245m based on the recent share price. 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 Do The Jazz Pharmaceuticals Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. On the plus side, Jazz Pharmaceuticals makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Jazz Pharmaceuticals.

Of course Jazz Pharmaceuticals 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 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.