Independent Director David Drabik Just Sold A Bunch Of Shares In Lannett Company, Inc. (NYSE:LCI)

We'd be surprised if Lannett Company, Inc. (NYSE:LCI) shareholders haven't noticed that the Independent Director, David Drabik, recently sold US$203k worth of stock at US$6.08 per share. That sale was 39% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Lannett Company

Lannett Company Insider Transactions Over The Last Year

Notably, that recent sale by Independent Director David Drabik was not the only time they sold Lannett Company shares this year. Earlier in the year, they fetched US$7.37 per share in a -US$274k sale. That means that an insider was selling shares at around the current price of US$6.55. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Insiders in Lannett Company didn't buy any shares in the last year. 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!

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).

Does Lannett Company Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Lannett Company insiders own about US$38m worth of shares. That equates to 15% 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.

What Might The Insider Transactions At Lannett Company Tell Us?

An insider hasn't bought Lannett Company stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While we like knowing 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. You'd be interested to know, that we found 3 warning signs for Lannett Company and we suggest you have a look.

But note: Lannett Company 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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