Glaukos President & COO Joseph Gilliam Sells 39% Of Holding

We wouldn't blame Glaukos Corporation (NYSE:GKOS) shareholders if they were a little worried about the fact that Joseph Gilliam, the President & COO recently netted about US$1.7m selling shares at an average price of US$90.00. That's a big disposal, and it decreased their holding size by 39%, which is notable but not too bad.

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Glaukos Insider Transactions Over The Last Year

In fact, the recent sale by Joseph Gilliam was the biggest sale of Glaukos shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$99.62, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 39% of Joseph Gilliam's holding.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Glaukos

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Glaukos Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Glaukos insiders own 3.3% of the company, worth about US$187m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Glaukos Insiders?

An insider hasn't bought Glaukos stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. In terms of investment risks, we've identified 1 warning sign with Glaukos and understanding this should be part of your investment process.

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.