Hikma Pharmaceuticals Plc (LON: HIK) has seen more insider selling than buying in the past three months. It may raise concerns among the bullish investors. Taking a longer-term perspective, the insider picture is not particularly reassuring.
The company’s promoters own 2.3% of the firm, valued at approximately £110 million based on the current share price. It has been observed that higher promoter ownership increases the likelihood that insiders will have a long-term incentive to develop the company.
Why did the insiders start to sell?
When looking at the price chart we will have the answer to why there has been a lot of promoter selling. The HIK stock price has seen an uptrend since November of 2022. As the bulls kept pushing the price insider sellers profited the most.
However, the positive half-yearly reports from the firm along with regular dividends have propelled the growth of HIK stock price even more. During this period, the revenue grew by a CAGR of 24%. Even after huge spending on sales and general expenses, the company maintained its positive net profits.
The increment of dividends
In 2022, the company’s profits were strong, and the management increased the dividend payout by 66%, resulting in a dividend of £0.45 per share and a yield of 2.9% for the shareholders.
Technical analysis and prediction of HIK stock price
The HIK stock price is trading at the level of £2093 at the press time. the stock is consolidating in between the immediate support level of £2044 and the immediate resistance level of £2154. The trend is still bullish, as confirmed by the 50-day EMA, which is at £2070. looking back, it is observed that the bulls are surfing by supporting the 50-day EMA throughout this bullish trend.
The trendline is being made after the stock price came over its reistsance of £1913 back in July o this year. This trend line is closing down on the resistance level. It will be interesting to see if the bulls can break another resistance level following this trendline.
Conclusion
The HIK stock price has been rising since November last year, following this uptrend a good volume of insider selling is observed. The current trend is still bullish and so is the price prediction. If the bulls are able to go with the trend, they will break their immediate resistance
Technical Levels
Support:£2044, and £1913
Resistance: £2154, and £2304
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/09/28/hik-stock-price-insiders-are-selling-as-the-stock-is-bullish/