We wouldn't blame Alnylam Pharmaceuticals, Inc. (NASDAQ:ALNY) shareholders if they were a little worried about the fact that Yvonne Greenstreet, the CEO & Director recently netted about US$1.3m selling shares at an average price of US$251. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.6%.
Alnylam Pharmaceuticals Insider Transactions Over The Last Year
Notably, that recent sale by CEO & Director Yvonne Greenstreet was not the only time they sold Alnylam Pharmaceuticals shares this year. Earlier in the year, they fetched US$235 per share in a -US$1.9m sale. That means that even when the share price was below the current price of US$253, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 13% of Yvonne Greenstreet's holding.
In the last year Alnylam Pharmaceuticals 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Alnylam Pharmaceuticals insiders own about US$116m worth of shares (which is 0.4% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Alnylam Pharmaceuticals Insiders?
Insiders haven't bought Alnylam Pharmaceuticals stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for Alnylam Pharmaceuticals that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
