Insider buying: Lead independent director of Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) just bought 57% more shares
Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) Shareholders (or potential shareholders) will be happy to see that senior independent director Bruce Sachs recently bought $ 3.0 million worth of shares, priced at $ 198. This increased their attendance by 57%, which arguably implies the kind of confidence required for a shy, sweet nerd to ask the most popular kid in school out on a date.
See our latest review for Vertex Pharmaceuticals
Vertex Pharmaceuticals Insider Trading in the Past Year
Notably, this recent purchase by senior independent director Bruce Sachs wasn’t the only time they’ve bought shares of Vertex Pharmaceuticals this year. Previously, they had made an even larger purchase of $ 3.3 million of shares at a price of $ 219 per share. So it’s clear that an insider wanted to buy, even at a price higher than the current share price (US $ 203). It is very possible that they regret the purchase, but it is more likely that they are optimistic about the business. In our opinion, the price that an insider pays for the shares is very important. Generally speaking, this comes to our attention when an insider bought shares at prices higher than current prices, as it suggests that they thought the shares were worth buying, even at a higher price. The only individual insider to buy in the past year was Bruce Sachs.
Bruce Sachs bought 30,000 shares during the year. The average price per share was US $ 208. Below you can see a visual representation of insider trading (by businesses and individuals) over the past 12 months. By clicking on the graph below, you can see the precise detail of each insider trade!
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Insider Property of Vertex Pharmaceuticals
Looking at the total insider stakes in a company can help you determine if they are aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. It appears that insiders at Vertex Pharmaceuticals own 0.1% of the company, worth around $ 79 million. While this is a high but not exceptional level of insider ownership, it is enough to indicate some alignment between management and small shareholders.
So what does this data suggest about Vertex Pharmaceuticals insiders?
It’s certainly positive to see the recent insider buy. We also trust the longer term picture of insider trading. Insiders likely see value in shares of Vertex Pharmaceuticals, given these transactions (as well as the company’s notable insider ownership). Sure, the future is what matters most. So if you are interested in Vertex Pharmaceuticals, you should check out this free analyst forecast report for the company.
But beware : Vertex 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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