Possible bearish signals as Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) insiders disposed of US$16m worth of stock




  • In Business
  • 2022-10-01 14:00:34Z
  • By Simply Wall St.
 

Over the past year, many Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Regeneron Pharmaceuticals

The Last 12 Months Of Insider Transactions At Regeneron Pharmaceuticals

In the last twelve months, the biggest single sale by an insider was when the Independent Director, George Sing, sold US$7.0m worth of shares at a price of US$660 per share. That means that an insider was selling shares at slightly below the current price (US$689). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 23% of George Sing's holding.

Regeneron 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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).

Insiders At Regeneron Pharmaceuticals Have Sold Stock Recently

The last three months saw significant insider selling at Regeneron Pharmaceuticals. In total, Independent Director Arthur Ryan dumped US$4.3m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

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. Regeneron Pharmaceuticals insiders own about US$3.1b worth of shares (which is 4.2% of the company). 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 Regeneron Pharmaceuticals Insiders?

An insider sold Regeneron Pharmaceuticals shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Regeneron Pharmaceuticals. At Simply Wall St, we found 2 warning signs for Regeneron Pharmaceuticals that deserve your attention before buying any shares.

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.

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.

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