Have Insiders Sold Fulgent Genetics Shares Recently?

We'd be surprised if Fulgent Genetics, Inc. (NASDAQ:FLGT) shareholders haven't noticed that the COO & President, Jian Xie, recently sold US$291k worth of stock at US$29.10 per share. However, the silver lining is that the sale only reduced their total holding by 4.0%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Fulgent Genetics

In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Paul Kim bought US$1.6m worth of shares at a price of US$15.96 per share. Even though the purchase was made at a significantly lower price than the recent price (US$30.00), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Fulgent Genetics

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.

Insider Ownership Of Fulgent Genetics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. 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 33% of the company, currently worth about US$308m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Fulgent Genetics Tell Us?

Insiders haven't bought Fulgent Genetics stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're not too bothered by recent selling. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we've found that Fulgent Genetics has 2 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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 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.