Insiders who sold US$12m worth of Seagen Inc. (NASDAQ:SGEN) stock last year were handsomely rewarded

By
Simply Wall St
Published
March 23, 2022
NasdaqGS:SGEN
Source: Shutterstock

Seagen Inc.'s (NASDAQ:SGEN) stock rose 3.9% last week, but insiders who sold US$12m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$166, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Seagen

Seagen Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Clay Siegall, sold US$10m worth of shares at a price of US$170 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$143). So it is hard to draw any strong conclusion from it.

In the last year Seagen insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:SGEN Insider Trading Volume March 23rd 2022

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).

Insider Ownership of Seagen

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Seagen insiders own 0.7% of the company, currently worth about US$177m based on the recent share price. 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 Seagen Insiders?

The fact that there have been no Seagen insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Seagen insiders selling. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Seagen.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

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