Insiders were net sellers of Xenon Pharmaceuticals Inc.'s (NASDAQ:XENE ) stock during the past year. That is, insiders sold more stock than they bought.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Xenon Pharmaceuticals

Over the last year, we can see that the biggest insider sale was by the Independent Director, Steven Gannon, for US$602k worth of shares, at about US$46.45 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$38.83). So it is hard to draw any strong conclusion from it. Steven Gannon was the only individual insider to sell over the last year.

Steven Gannon divested 31.00k shares over the last 12 months at an average price of US$41.29. 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!

I will like Xenon Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Xenon Pharmaceuticals

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Xenon Pharmaceuticals insiders have about 0.1% of the stock, worth approximately US$4.1m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Xenon Pharmaceuticals Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Xenon Pharmaceuticals insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. Every company has risks, and we've spotted 2 warning signs for Xenon Pharmaceuticals (of which 1 doesn't sit too well with us!) you should know about.

But note: Xenon Pharmaceuticals 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.

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.