Alexion Pharmaceuticals (ALXN 116.16) recently made waves with the announcement that it hired Paul J. Clancy, who has spent the last 16 years at Biogen (BIBB 260.54), to be its Chief Financial Officer, effective July 31. Following Monday's close, Alexion Pharmaceuticals hit the wires again with the news that its Chief Executive Officer, Ludwig Hantson, made a large stock purchase.
Specifically, a Form 4 filing with the SEC disclosed the purchase of 10,000 shares by Mr. Hantson on June 14. This was a direct stock purchase by Mr. Hantson who owns 38,725 shares of ALXN following the reported transaction.
The 10,000 shares were acquired at a price of $116.72, so Mr. Hantson spent approximately $1.7 million to acquire the new shares.
Investors like it when insiders make stock purchases, particularly the CEO, who presumably has the best understanding of the company's outlook. Accordingly, a large, and direct, stock purchase creates some optimism about the company's earnings prospects since earnings ultimately drive stock prices.
ALXN shares could use some driving, too. They are down 5.1% year-to-date and have dropped roughly 45% from the all-time high they hit nearly two years ago.