Insiders Sold Bullfrog AI Holdings Prematurely At US$3.83 With Stock Trading Higher

Bullfrog AI Holdings, Inc.'s (NASDAQ:BFRG) value has fallen 13% in the last week, but insiders who sold US$451k worth of stock over the last year have had less success. Given that the average selling price of US$3.83 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Bullfrog AI Holdings

The Last 12 Months Of Insider Transactions At Bullfrog AI Holdings

The Founder, Vininder Singh, made the biggest insider sale in the last 12 months. That single transaction was for US$188k worth of shares at a price of US$7.50 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$2.65). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Vininder Singh.

Vininder Singh ditched 117.89k shares over the year. The average price per share was US$3.83. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Insiders At Bullfrog AI Holdings Have Sold Stock Recently

The last quarter saw substantial insider selling of Bullfrog AI Holdings shares. In total, Founder Vininder Singh sold US$149k 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.

Does Bullfrog AI Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Bullfrog AI Holdings insiders own 39% of the company, worth about US$8.8m. 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 our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Bullfrog AI Holdings. To help with this, we've discovered 6 warning signs (3 don't sit too well with us!) that you ought to be aware of before buying any shares in Bullfrog AI Holdings.

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.