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A number of insiders bought Eli Lilly and Company (NYSE:LLY) stock last year,


When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Eli Lilly and Company’s (NYSE:LLY) instance, it’s good news for shareholders.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out the opportunities and risks within the US Pharmaceuticals industry.

Eli Lilly Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Jackson Tai for US$200k worth of shares, at about US$304 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$362. 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.

While Eli Lilly insiders bought shares during the last year, they didn’t sell. 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!

insider-trading-volume
NYSE:LLY Insider Trading Volume November 24th 2022

Eli Lilly is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Eli Lilly 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Eli Lilly insiders own 0.1% of the company, currently worth about US$457m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Eli Lilly Insider Transactions Indicate?

The fact that there have been no Eli Lilly insider transactions recently certainly doesn’t bother us. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Eli Lilly insiders feel good about the company’s future. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Eli Lilly. At Simply Wall St, we found 3 warning signs for Eli Lilly that deserve your attention before buying any shares.

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

Valuation is complex, but we’re helping make it simple.

Find out whether Eli Lilly is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis

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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