Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) insiders have a reason to boast after seeing a US$145k addition to their US$688k investment
Insiders who bought Rigel Pharmaceuticals, Inc. (NASDAQ:RIGL) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$14m as a result of the stock's 11% gain over the same period. As a result, the stock they originally bought for US$688k is now worth US$834k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Rigel Pharmaceuticals
Rigel Pharmaceuticals Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when President Raul Rodriguez bought US$688k worth of shares at a price of US$0.69 per share. Even though the purchase was made at a significantly lower price than the recent price (US$0.83), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Rigel 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Rigel Pharmaceuticals insiders own 0.8% of the company, worth about US$1.1m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Rigel Pharmaceuticals Tell Us?
The fact that there have been no Rigel Pharmaceuticals insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Rigel Pharmaceuticals insiders bought more shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Be aware that Rigel Pharmaceuticals is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course Rigel 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, 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.
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