Quite a few Supernus Pharmaceuticals, Inc. (NASDAQ:SUPN) insiders sold their shares over the past year, which may be a cause for concern. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.

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 Supernus Pharmaceuticals

In fact, the recent sale by Frederick Hudson was the biggest sale of Supernus Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$35.57. 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.

Insiders in Supernus Pharmaceuticals didn't buy any shares in the last year. 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!

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Insiders At Supernus Pharmaceuticals Have Sold Stock Recently

The last three months saw significant insider selling at Supernus Pharmaceuticals. In total, insiders dumped US$438k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Supernus Pharmaceuticals insiders own 4.2% of the company, worth about US$85m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Supernus Pharmaceuticals Insider Transactions Indicate?

Insiders sold Supernus Pharmaceuticals shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Supernus Pharmaceuticals is profitable and growing, we're not too worried by this. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Supernus Pharmaceuticals. At Simply Wall St, we found 1 warning sign for Supernus Pharmaceuticals that deserve your attention before buying any shares.

Of course Supernus Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.