Some Veradermics, Incorporated (NYSE:MANE) shareholders may be a little concerned to see that the Independent Non-Employee Director, John Childs, recently sold a substantial US$11m worth of stock at a price of US$107 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.0%.

Veradermics Insider Transactions Over The Last Year

In fact, the recent sale by John Childs was the biggest sale of Veradermics shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$113. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 5.0% of John Childs's holding.

Over the last year, we can see that insiders have bought 411.76k shares worth US$7.0m. But they sold 100.00k shares for US$11m. 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!

I will like Veradermics better if I see some big insider buys.

Does Veradermics Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Veradermics insiders own 8.0% of the company, worth about US$377m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Veradermics Insiders?

An insider hasn't bought Veradermics stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Veradermics has 3 warning signs (and 1 which is significant) we think you should know about.

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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.

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.