Who sold the shares of Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX)?
We often see insiders buying back shares of companies that are performing well over the long term. Unfortunately, there are also many examples of stock prices plummeting after insiders sell stocks. So before you buy or sell Pharmaceutical Lexicon, Inc. (NASDAQ: LXRX), you might want to know if any insiders have bought or sold.
Are Insider Trading Important?
It is quite normal to see company insiders, such as board members, trading company shares from time to time. However, there are rules governing insider trading and certain information is required.
We would never suggest that investors should base their decisions solely on what the directors of a company have done. But also, we would consider it foolish to ignore insider trading altogether. As Peter Lynch said, “Insiders can sell their shares for any number of reasons, but they buy them for one only: they think the price will go up.”
Check out our latest review for Lexicon Pharmaceuticals
Lexicon Pharmaceuticals insider trading in the past year
Over the past year, we can see that the biggest insider sale has come from VP of Finance and Accounting, James Tessmer, for US $ 75,000 of shares, at around 6.90 US $ per share. While insider selling is negative, for us it is even more so if stocks are sold for a lower price. It is heartwarming that this sale was made at a much higher price than the current share price, which is US $ 3.71. It is therefore difficult to draw a solid conclusion. James Tessmer has been the only individual insider to sell shares in the past twelve months.
Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. If you want to know exactly who sold, for how much and when, just click on the graph below!
If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).
Many investors like to check how well a company is owned by insiders. I think it’s a good sign if the insiders own a significant number of shares in the company. Our data indicates that Lexicon Pharmaceuticals insiders own approximately $ 6.6 million in shares (or 1.2% of the company). Overall, this level of ownership isn’t that impressive, but it’s definitely better than nothing!
What might insider trading at Lexicon Pharmaceuticals tell us?
There haven’t been any insider trading in the past three months, that doesn’t mean much. Our analysis of Lexicon Pharmaceuticals insider trading leaves us half-hearted. Note also that, to our knowledge, insider ownership is quite low compared to other companies. In addition to knowing the current insider transactions, it is useful to identify the risks facing Lexicon Pharmaceuticals. Our analysis shows 4 warning signs for Lexicon Pharmaceuticals (1 is significant!) And we strongly recommend that you review them before investing.
But beware : Lexicon Pharmaceuticals May Not Be The Best Stock To Buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
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