Anyone interested in Blueprint Medicines Corporation (NASDAQ:BPMC) should probably be aware that the Chief Medical Officer, Becker Hewes, recently divested US$432k worth of shares in the company, at an average price of US$88.80 each. The eyebrow raising move amounted to a reduction of 14% in their holding.
View our latest analysis for Blueprint Medicines
The insider, Philina Lee, made the biggest insider sale in the last 12 months. That single transaction was for US$567k worth of shares at a price of US$90.55 each. So we know that an insider sold shares at around the present share price of US$87.12. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Blueprint Medicines insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Blueprint Medicines better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Blueprint Medicines insiders own 1.2% of the company, worth about US$69m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
Insiders haven't bought Blueprint Medicines stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! While it's good to be aware of 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. While conducting our analysis, we found that Blueprint Medicines has 1 warning sign and it would be unwise to ignore this.
But note: Blueprint Medicines may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.
Discover if Blueprint Medicines might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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