Inogen Insiders Lose Out As Stock Sinks To US$6.35

Insiders who bought US$125.2k worth of Inogen, Inc.'s (NASDAQ:INGN) stock at an average buy price of US$8.51 over the last year may be disappointed by the recent 10% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$93.4k which is not ideal.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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The Last 12 Months Of Insider Transactions At Inogen

In the last twelve months, the biggest single purchase by an insider was when President Kevin R. Smith bought US$100k worth of shares at a price of US$8.56 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.35). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Over the last year, we can see that insiders have bought 14.71k shares worth US$125k. But insiders sold 10.00k shares worth US$86k. Overall, Inogen insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Inogen

Inogen is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Inogen Insiders Bought Stock Recently

Over the last quarter, Inogen insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$125k worth of shares. That shows some optimism about the company's future.

Insider Ownership

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. Based on our data, Inogen insiders have about 1.1% of the stock, worth approximately US$2.1m. We prefer to see high levels of insider ownership.

So What Do The Inogen Insider Transactions Indicate?

The recent insider purchases are heartening. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Inogen insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. You'd be interested to know, that we found 1 warning sign for Inogen and we suggest you have a look.

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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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.