Insiders Who Sold Rigel Pharmaceuticals Made The Right Call As Market Cap Slides By US$97m
Over the past year, insiders sold US$424k worth of Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) stock at an average price of US$21.39 per share allowing them to get the most out of their money. After the stock price dropped 11% last week, the company's market value declined by US$97m, but insiders were able to mitigate their losses.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Rigel Pharmaceuticals Insider Transactions Over The Last Year
The President, Raul Rodriguez, made the biggest insider sale in the last 12 months. That single transaction was for US$200k worth of shares at a price of US$21.93 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$42.05. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 5.9% of Raul Rodriguez's holding.
Insiders in Rigel 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!
See our latest analysis for Rigel 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).
Does Rigel Pharmaceuticals Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Rigel Pharmaceuticals insiders own 1.4% of the company, worth about US$10m. 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 Does This Data Suggest About Rigel Pharmaceuticals Insiders?
It doesn't really mean much that no insider has traded Rigel Pharmaceuticals shares in the last quarter. Our analysis of Rigel Pharmaceuticals insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Rigel Pharmaceuticals (1 is concerning!) that we believe deserve your full attention.
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.