Some Roivant Sciences Ltd. (NASDAQ:ROIV) shareholders may be a little concerned to see that insider Vivek Ramaswamy recently sold a substantial US$33m worth of stock at a price of US$11.05 per share. However, that sale only accounted for 5.5% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Roivant Sciences

The Last 12 Months Of Insider Transactions At Roivant Sciences

Notably, that recent sale by Vivek Ramaswamy is the biggest insider sale of Roivant Sciences shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$10.82. 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.

Vivek Ramaswamy sold a total of 7.00m shares over the year at an average price of US$9.28. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like Roivant Sciences better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Roivant Sciences Boast High 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. Roivant Sciences insiders own about US$1.7b worth of shares (which is 20% 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.

What Might The Insider Transactions At Roivant Sciences Tell Us?

An insider sold Roivant Sciences shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Roivant Sciences. At Simply Wall St, we found 3 warning signs for Roivant Sciences that deserve your attention before buying any shares.

But note: Roivant Sciences 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 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.