Independent Chairman Of Sight Sciences Sold 25% Of Their Shares

We wouldn't blame Sight Sciences, Inc. (NASDAQ:SGHT) shareholders if they were a little worried about the fact that Staffan Encrantz, the Independent Chairman recently netted about US$2.1m selling shares at an average price of US$3.73. That's a big disposal, and it decreased their holding size by 25%, which is notable but not too bad.

See our latest analysis for Sight Sciences

The Last 12 Months Of Insider Transactions At Sight Sciences

In fact, the recent sale by Staffan Encrantz was the biggest sale of Sight Sciences shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.01. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 25% of Staffan Encrantz's holding.

Over the last year, we can see that insiders have bought 667.86k shares worth US$2.3m. On the other hand they divested 781.41k shares, for US$3.4m. Over the last year we saw more insider selling of Sight Sciences shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Sight Sciences better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Sight Sciences

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Sight Sciences insiders own about US$42m worth of shares. That equates to 20% of the company. 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 Does This Data Suggest About Sight Sciences Insiders?

The stark truth for Sight Sciences is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 3 warning signs for Sight Sciences that deserve your attention before buying any shares.

But note: Sight Sciences 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.