Anyone interested in Fulgent Genetics, Inc. (NASDAQ:FLGT) should probably be aware that the Chief Financial Officer, Paul Kim, recently divested US$142k worth of shares in the company, at an average price of US$11.50 each. However, the silver lining is that the sale only reduced their total holding by-3.4%, so we’re hesitant to read anything much into it, on its own.
Fulgent Genetics Insider Transactions Over The Last Year
Notably, that recent sale by Paul Kim is the biggest insider sale of Fulgent Genetics shares that we’ve seen in the last year. That means that an insider was selling shares at around the current price of US$10.63. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
Paul Kim ditched 16404 shares over the year. The average price per share was US$9.79. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Fulgent Genetics insiders own 57% of the company, currently worth about US$112m 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.
What Might The Insider Transactions At Fulgent Genetics Tell Us?
An insider hasn’t bought Fulgent Genetics stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn’t bring confidence, either. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Fulgent Genetics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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