Investors who take an interest in Progenity, Inc. (NASDAQ:PROG) should definitely note that the Founder, Harry Stylli, recently paid US$3.27 per share to buy US$500k worth of the stock. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 1.1%.
Progenity Insider Transactions Over The Last Year
Notably, that recent purchase by Harry Stylli is the biggest insider purchase of Progenity shares that we've seen in the last year. That implies that an insider found the current price of US$3.42 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Progenity share holders is that insiders were buying at near the current price.
Progenity insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$5.69. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Progenity is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Progenity 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. Progenity insiders own about US$50m worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Progenity Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives 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 Progenity insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Progenity. At Simply Wall St, we've found that Progenity has 3 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.
Of course Progenity 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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.
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