We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in UroGen Pharma Ltd. (NASDAQ:URGN).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
UroGen Pharma Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the , Moshe Arkin, sold US$12m worth of shares at a price of US$62.56 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$40.35. So it is hard to draw any strong conclusion from it.
In total, UroGen Pharma insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by 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!
If you are like me, then you will not want to miss this freelist of growing companies that insiders are buying.
Insiders at UroGen Pharma Have Sold Stock Recently
We have seen a bit of insider selling at UroGen Pharma, over the last three months. The selling netted US$35k for Chief Medical Officer Mark Schoenberg. But (as above)at least we saw US$10k worth of buying. While it's not great to see insider selling, the net amount sold isn't enough for us to want to read anything into it.
Insider Ownership of UroGen Pharma
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that UroGen Pharma insiders own 8.5% of the company, worth about US$71m. 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 Do The UroGen Pharma Insider Transactions Indicate?
Insider selling has just outweighed insider buying in the last three months. But the net divestment is not enough to concern us at all. Recent sales exacerbate our caution arising from analysis of UroGen Pharma insider transactions. But it's good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in UroGen Pharma, you should check out this freereport on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this freelist of interesting companies.
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