56% Of This Glaukos Insider's Holdings Were Sold

Viewing insider transactions for Glaukos Corporation's (NYSE:GKOS ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

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.

See our latest analysis for Glaukos

The Last 12 Months Of Insider Transactions At Glaukos

The President & COO, Joseph Gilliam, made the biggest insider sale in the last 12 months. That single transaction was for US$2.0m worth of shares at a price of US$93.05 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$155. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 56% of Joseph Gilliam's stake. Joseph Gilliam was the only individual insider to sell over the last year.

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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Glaukos insiders own 3.2% of the company, currently worth about US$277m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Glaukos Tell Us?

It doesn't really mean much that no insider has traded Glaukos shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Glaukos insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Glaukos. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Glaukos.

But note: Glaukos 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.