Have Supernus Pharmaceuticals Insiders Been Selling Stock?

We'd be surprised if Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) shareholders haven't noticed that the Independent Director, Frederick Hudson, recently sold US$316k worth of stock at US$36.28 per share. That sale was 23% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Supernus Pharmaceuticals

Supernus Pharmaceuticals Insider Transactions Over The Last Year

In fact, the recent sale by Frederick Hudson was the biggest sale of Supernus Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$37.77, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 23% of Frederick Hudson's holding.

Supernus Pharmaceuticals insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Does Supernus Pharmaceuticals Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Supernus Pharmaceuticals insiders own about US$89m worth of shares. That equates to 4.2% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Supernus Pharmaceuticals Insiders?

Insiders sold Supernus Pharmaceuticals shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Supernus Pharmaceuticals is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Supernus Pharmaceuticals.

But note: Supernus 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 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.