Yahoo Finance Selling US$7.7m Of Alnylam Pharmaceuticals Stock Rewarded Insiders
While Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) shareholders have enjoyed a good week with stock up 47%, they need remain vigilant. In spite of the relatively cheap prices, insiders made the decision to sell US$7.7m worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Alnylam Pharmaceuticals
The Last 12 Months Of Insider Transactions At Alnylam Pharmaceuticals
Notably, that recent sale by Yvonne Greenstreet is the biggest insider sale of Alnylam Pharmaceuticals shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$243. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 13% of Yvonne Greenstreet's stake.
Alnylam Pharmaceuticals insiders didn't buy any shares over 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 are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insiders At Alnylam Pharmaceuticals Have Sold Stock Recently
The last three months saw significant insider selling at Alnylam Pharmaceuticals. In total, insiders sold US$3.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Alnylam Pharmaceuticals insiders own 0.4% of the company, worth about US$112m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Alnylam Pharmaceuticals Tell Us?
Insiders sold Alnylam Pharmaceuticals shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Be aware that Alnylam Pharmaceuticals is showing 3 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
