Yahoo Finance Trade Alert: The Independent Director Of Insmed Incorporated (NASDAQ:INSM), Melvin Sharoky, Has Just Spent US$344k Buying 8.7% More Shares
Potential Insmed Incorporated (NASDAQ:INSM) shareholders may wish to note that the Independent Director, Melvin Sharoky, recently bought US$344k worth of stock, paying US$17.20 for each share. Although the purchase only increased their holding by 8.7%, it is still a solid purchase in our view.
View our latest analysis for Insmed
Insmed Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Steinar Engelsen bought US$429k worth of shares at a price of US$30.14 per share. That means that an insider was happy to buy shares at above the current price of US$18.19. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 44.24k shares for US$1.1m. But they sold 31.04k shares for US$821k. In total, Insmed insiders bought more than they sold over the last year. Their average price was about US$24.29. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Insmed is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Insmed insiders own about US$25m worth of shares. That equates to 1.1% 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 Insmed Tell Us?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Insmed we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 3 warning signs with Insmed and understanding these should be part of your investment process.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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.
