Have Insiders Sold Ultragenyx Pharmaceutical Shares Recently?

We wouldn't blame Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) shareholders if they were a little worried about the fact that Emil Kakkis, the Founder recently netted about US$4.2m selling shares at an average price of US$42.20. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.5%.

See our latest analysis for Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Insider Transactions Over The Last Year

In fact, the recent sale by Emil Kakkis was the biggest sale of Ultragenyx Pharmaceutical shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$37.50). So it may not shed much light on insider confidence at current levels.

In the last year Ultragenyx Pharmaceutical insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Ultragenyx Pharmaceutical Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Ultragenyx Pharmaceutical insiders own about US$122m worth of shares (which is 3.4% 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 Ultragenyx Pharmaceutical 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. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ultragenyx Pharmaceutical. In terms of investment risks, we've identified 2 warning signs with Ultragenyx Pharmaceutical and understanding these should be part of your investment process.

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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.