Fulgent Genetics Chief Financial Officer Acquires 40% More Stock

Fulgent Genetics, Inc. (NASDAQ:FLGT) shareholders (or potential shareholders) will be happy to see that the Chief Financial Officer, Paul Kim, recently bought a whopping US$1.6m worth of stock, at a price of US$15.96. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 40%.

Check out our latest analysis for Fulgent Genetics

Fulgent Genetics Insider Transactions Over The Last Year

In fact, the recent purchase by Paul Kim was the biggest purchase of Fulgent Genetics shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$17.90. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Fulgent Genetics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Fulgent Genetics insiders own about US$198m worth of shares (which is 39% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Fulgent Genetics Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Fulgent Genetics insiders are well aligned, and quite possibly think the share price is too low. Nice! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Fulgent Genetics you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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