Possible Signal As Rocket Pharmaceuticals Insiders Sell US$1.1m In Stock

Even though Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) stock gained 36% last week, insiders who sold US$1.1m worth of stock over the past year are probably better off. Selling at an average price of US$8.64, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

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Rocket Pharmaceuticals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Gaurav Shah, for US$172k worth of shares, at about US$10.58 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$4.27). So it may not tell us anything about how insiders feel about the current share price. Notably Gaurav Shah was also the biggest buyer, having purchased US$235k worth of shares.

Over the last year, we can see that insiders have bought 51.10k shares worth US$235k. On the other hand they divested 124.52k shares, for US$1.1m. Over the last year we saw more insider selling of Rocket Pharmaceuticals shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Rocket Pharmaceuticals

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Insiders At Rocket Pharmaceuticals Have Sold Stock Recently

There was substantially more insider selling, than buying, of Rocket Pharmaceuticals shares over the last three months. In total, insiders sold US$107k worth of shares in that time. On the other hand we note Independent Director Elisabeth Bjork bought US$34k worth of shares. Generally this level of net selling might be considered a bit bearish.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Rocket Pharmaceuticals insiders own 2.8% of the company, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Rocket Pharmaceuticals Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Rocket Pharmaceuticals, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of 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. For example, Rocket Pharmaceuticals has 5 warning signs (and 1 which is potentially serious) we think you should know about.

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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.