Even though Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) has fallen by 12% over the past week , insiders who sold US$2.9m worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$50.26 is still lower than the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Ionis Pharmaceuticals

Notably, that recent sale by Founder Brett Monia was not the only time they sold Ionis Pharmaceuticals shares this year. They previously made an even bigger sale of -US$1.2m worth of shares at a price of US$49.37 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$44.43). So it is hard to draw any strong conclusion from it.

Ionis Pharmaceuticals insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Ionis Pharmaceuticals Insiders Are Selling The Stock

The last three months saw significant insider selling at Ionis Pharmaceuticals. In total, insiders dumped US$2.9m 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.

Does Ionis Pharmaceuticals Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Insiders own 0.8% of Ionis Pharmaceuticals shares, worth about US$51m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Ionis Pharmaceuticals Insider Transactions Indicate?

Insiders sold Ionis Pharmaceuticals shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ionis Pharmaceuticals. In terms of investment risks, we've identified 2 warning signs with Ionis Pharmaceuticals and understanding them should be part of your investment process.

But note: Ionis 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.

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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.