President Of Verona Pharma Sold 28% Of Their Shares

Some Verona Pharma plc (NASDAQ:VRNA) shareholders may be a little concerned to see that the President, David Zaccardelli, recently sold a substantial US$2.3m worth of stock at a price of US$3.76 per share. That's a big disposal, and it decreased their holding size by 28%, which is notable but not too bad.

View our latest analysis for Verona Pharma

Verona Pharma Insider Transactions Over The Last Year

In fact, the recent sale by David Zaccardelli was the biggest sale of Verona Pharma shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$29.19). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 28% of David Zaccardelli's holding.

In the last twelve months insiders purchased 28.72k shares for US$481k. But they sold 1.25m shares for US$5.8m. In total, Verona Pharma insiders sold more than they bought over the last year. 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!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Verona Pharma insiders own 4.5% of the company, worth about US$111m. 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 Verona Pharma Insiders?

The insider sales have outweighed the insider buying, at Verona Pharma, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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 help with this, we've discovered 3 warning signs (1 is significant!) that you ought to be aware of before buying any shares in Verona Pharma.

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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.