Trade Alert: Chief Financial Officer Of Fennec Pharmaceuticals Robert Andrade Has Sold Stock
We wouldn't blame Fennec Pharmaceuticals Inc. (NASDAQ:FENC) shareholders if they were a little worried about the fact that Robert Andrade, the Chief Financial Officer recently netted about US$1.3m selling shares at an average price of US$11.79. That sale reduced their total holding by 33% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At Fennec Pharmaceuticals
In fact, the recent sale by Robert Andrade was the biggest sale of Fennec 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 slightly below the current price (US$12.27). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 33% of Robert Andrade's holding.
Over the last year, we can see that insiders have bought 180.20k shares worth US$421k. But insiders sold 139.39k shares worth US$1.5m. Over the last year we saw more insider selling of Fennec Pharmaceuticals shares, than buying. The average sell price was around US$10.93. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!
Check out our latest analysis for Fennec Pharmaceuticals
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Does Fennec 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. It appears that Fennec Pharmaceuticals insiders own 3.2% of the company, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Fennec Pharmaceuticals Tell Us?
Unfortunately, there has been more insider selling of Fennec Pharmaceuticals stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 2 warning signs for Fennec Pharmaceuticals and we suggest you have a look.
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.