Possible Bearish Signals With Ultragenyx Pharmaceutical Insiders Disposing Stock

Over the past year, many Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Ultragenyx Pharmaceutical

The Last 12 Months Of Insider Transactions At Ultragenyx Pharmaceutical

In the last twelve months, the biggest single sale by an insider was when the Founder, Emil Kakkis, sold US$1.1m worth of shares at a price of US$55.85 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$46.67. 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. The chart below shows insider transactions (by companies and individuals) over the last year. 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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Insiders At Ultragenyx Pharmaceutical Have Sold Stock Recently

The last three months saw significant insider selling at Ultragenyx Pharmaceutical. In total, Executive VP of Corporate Strategy & CFO Howard Horn sold US$394k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Ultragenyx Pharmaceutical

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ultragenyx Pharmaceutical insiders own about US$153m worth of shares (which is 3.5% 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 Does This Data Suggest About Ultragenyx Pharmaceutical Insiders?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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. While conducting our analysis, we found that Ultragenyx Pharmaceutical has 3 warning signs and it would be unwise to ignore them.

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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.