Yahoo Finance Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) insiders have a reason to boast after seeing a US$2.0m addition to their US$4.9m investment
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 5.7%, resulting in a US$3.8b rise in the company's market capitalisation. As a result, the stock they originally bought for US$4.9m is now worth US$6.9m.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Vertex Pharmaceuticals
The Last 12 Months Of Insider Transactions At Vertex Pharmaceuticals
The Lead Independent Director Bruce Sachs made the biggest insider purchase in the last 12 months. That single transaction was for US$3.0m worth of shares at a price of US$198 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$276. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
While Vertex Pharmaceuticals insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does Vertex Pharmaceuticals Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Vertex Pharmaceuticals insiders own 0.3% of the company, worth about US$180m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Vertex Pharmaceuticals Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. With high insider ownership and encouraging transactions, it seems like Vertex Pharmaceuticals insiders think the business has merit. Of course, the future is what matters most. So if you are interested in Vertex Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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, but not derivative transactions.
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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.
