Have Insiders Sold Rocket Pharmaceuticals Shares Recently?
We'd be surprised if Rocket Pharmaceuticals, Inc. (NASDAQ:RCKT) shareholders haven't noticed that the Gen. Counsel, Martin Wilson, recently sold US$256k worth of stock at US$3.40 per share. The eyebrow raising move amounted to a reduction of 11% in their holding.
Rocket Pharmaceuticals Insider Transactions Over The Last Year
Notably, that recent sale by Martin Wilson is the biggest insider sale of Rocket Pharmaceuticals shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$3.48). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 11% of Martin Wilson's holding.
Over the last year we saw more insider selling of Rocket Pharmaceuticals shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Rocket Pharmaceuticals
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
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Rocket Pharmaceuticals insiders own about US$15m worth of shares. That equates to 4.0% of the company. 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 Rocket Pharmaceuticals Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. 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 Rocket Pharmaceuticals. Case in point: We've spotted 4 warning signs for Rocket Pharmaceuticals you should be aware of, and 2 of these are a bit unpleasant.
Of course Rocket 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.