Insider Sellers Might Regret Selling Bullfrog AI Holdings Shares at a Lower Price Than Current Market Value

Bullfrog AI Holdings, Inc.'s (NASDAQ:BFRG) stock price has dropped 10% in the previous week, but insiders who sold US$532k in stock over the past year have had less luck. Given that the average selling price of US$3.17 is still lower than the current share price, insiders would probably have been better off keeping their shares.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Bullfrog AI Holdings

Bullfrog AI Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Vininder Singh, for US$188k worth of shares, at about US$7.50 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.21. So it may not shed much light on insider confidence at current levels. Vininder Singh was the only individual insider to sell shares in the last twelve months.

Vininder Singh divested 167.89k shares over the last 12 months at an average price of US$3.17. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Bullfrog AI Holdings Insiders Are Selling The Stock

The last three months saw significant insider selling at Bullfrog AI Holdings. Specifically, Founder Vininder Singh ditched US$81k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Bullfrog AI Holdings

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Bullfrog AI Holdings insiders own about US$6.9m worth of shares. That equates to 39% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Bullfrog AI Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 7 warning signs for Bullfrog AI Holdings you should be aware of, and 4 of these shouldn't be ignored.

But note: Bullfrog AI Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 of direct interests only, but not derivative transactions or indirect interests.

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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.