Trade Alert: The Executive VP & Chief Legal Officer Of Jazz Pharmaceuticals plc (NASDAQ:JAZZ), Neena Patil, Has Sold Some Shares Recently

We'd be surprised if Jazz Pharmaceuticals plc (NASDAQ:JAZZ) shareholders haven't noticed that the Executive VP & Chief Legal Officer, Neena Patil, recently sold US$500k worth of stock at US$142 per share. The eyebrow raising move amounted to a reduction of 40% in their holding.

See our latest analysis for Jazz Pharmaceuticals

The Last 12 Months Of Insider Transactions At Jazz Pharmaceuticals

Notably, that recent sale by Neena Patil is the biggest insider sale of Jazz Pharmaceuticals shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$147. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 40% of Neena Patil's stake.

Insiders in Jazz Pharmaceuticals didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Jazz Pharmaceuticals Boast High Insider Ownership?

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's great to see that Jazz Pharmaceuticals insiders own 2.6% of the company, worth about US$238m. 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 there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Jazz Pharmaceuticals has 3 warning signs (and 1 which is potentially serious) we think you should know about.

But note: Jazz 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, but not derivative transactions.

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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.