Alkermes Insider Deal: EVP Gaffin Buys Shares Just Below Market Amid Avadel Expansion, Hinting at Undervalued Growth Potential

Insider Activity at Alkermes PLC: What the Latest Deal Tells Investors

Alkermes PLC’s most recent filing on February 23, 2026 shows EVP and CLO David Gaffin purchasing 7,689 ordinary shares while simultaneously selling 3,414 shares earlier that day. The purchase came at $31.04, just 0.07 % below the current market price of $31.04, and the overall trade volume—7,689 shares—represents only a fraction of the company’s daily turnover. In the context of Alkermes’ recent 52‑week high of $36.32 and a year‑to‑date decline of 8.81 %, the buy is modest but potentially significant when viewed against a backdrop of ongoing strategic moves, including the Avadel acquisition that is expected to broaden the company’s portfolio into sleep medicine.

Implications for Shareholders

While the absolute size of Gaffin’s transaction is small, the pattern of his activity over the past six months suggests a cautious, yet committed stance. In the last quarter he has alternated between buying and selling ordinary shares, with the largest buy (25,352 shares on 5 Feb 2026) roughly offset by a 7,619‑share sale on the same day. He has also been active in selling restricted‑stock‑unit awards, totaling over 15,000 shares in the last six months. For investors, this indicates that the top legal officer is not merely trading as a passive holder; rather, he is engaging in regular portfolio adjustments that may reflect his view of the company’s near‑term valuation. The fact that his most recent buy occurred at a price just below the market level suggests a belief that the stock is still undervalued, especially given the recent strategic acquisition and the company’s focus on CNS and sleep‑medicine pipelines.

What This Means for Alkermes’ Future

Insider buying is often interpreted as a signal of confidence in the company’s prospects. Gaffin’s continued participation—despite a series of sales—may point to a long‑term bet on Alkermes’ growth trajectory. The company’s 15.7 price‑to‑earnings multiple and a modest 3.04 price‑to‑book ratio place it at a reasonable valuation relative to its peers. Moreover, the acquisition of Avadel could unlock new revenue streams that might justify a higher valuation in the coming years. However, the recent 3‑month decline of 6.25 % and a negative market sentiment score (-8) suggest that investors are still cautious, perhaps awaiting clearer clinical data or commercial milestones.

Profile: David Gaffin – A Cautionary Insider

David Gaffin, EVP and Chief Legal Officer of Alkermes Inc., has a long history of insider transactions that balance buying and selling. Over the last twelve months he has made at least 12 trades involving ordinary shares and 9 trades involving restricted‑stock‑unit awards. His average purchase price has hovered in the mid‑$30s, while his average sale price has been slightly lower, reflecting a net positive position in the company’s shares. The pattern of selling large blocks of RSUs—often exceeding 6,000 shares—may be driven by vesting schedules rather than market sentiment. Overall, Gaffin’s activity suggests a disciplined approach: he retains a substantial stake (over 200,000 shares) but also liquidates portions of his holdings to rebalance his portfolio or satisfy liquidity needs, all while maintaining a long‑term view on Alkermes’ strategic direction.

Investor Takeaway

For traders and long‑term investors, the latest insider deal is a subtle nod to confidence without a dramatic shift in position. It highlights that Alkermes’ top legal officer believes the company’s valuation is still below its intrinsic value, especially as the firm expands into new therapeutic areas. The recent insider activity, coupled with the strategic acquisition and a respectable valuation profile, offers a cautiously optimistic outlook for shareholders who are comfortable with a company that is still evolving its pipeline and commercial footprint.