Ultragenyx Pharmaceutical Inc.'s (NASDAQ:RARE) stock price has dropped 12% in the previous week, but insiders who sold US$1.0m in stock over the past year have had less luck. Given that the average selling price of US$43.36 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Ultragenyx Pharmaceutical

The Last 12 Months Of Insider Transactions At Ultragenyx Pharmaceutical

In the last twelve months, the biggest single sale by an insider was when the Executive VP & Chief Commercial Officer, Erik Harris, sold US$228k worth of shares at a price of US$37.96 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$31.73. So it is hard to draw any strong conclusion from it.

In the last year Ultragenyx Pharmaceutical insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insiders At Ultragenyx Pharmaceutical Have Sold Stock Recently

The last quarter saw substantial insider selling of Ultragenyx Pharmaceutical shares. In total, insiders sold US$237k 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 Of Ultragenyx Pharmaceutical

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Ultragenyx Pharmaceutical insiders own 4.7% of the company, currently worth about US$108m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Ultragenyx Pharmaceutical Insider Transactions Indicate?

Insiders haven't bought Ultragenyx Pharmaceutical stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ultragenyx Pharmaceutical. Every company has risks, and we've spotted 4 warning signs for Ultragenyx Pharmaceutical you should know about.

But note: Ultragenyx Pharmaceutical 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.