Insiders who sold US$4.6m worth of Invitae Corporation (NYSE:NVTA) stock last year were handsomely rewarded

By
Simply Wall St
Published
March 21, 2022
NYSE:NVTA
Source: Shutterstock

Invitae Corporation's (NYSE:NVTA) stock rose 15% last week, but insiders who sold US$4.6m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$28.56, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Invitae

The Last 12 Months Of Insider Transactions At Invitae

The Chief Operating Officer, Kenneth Knight, made the biggest insider sale in the last 12 months. That single transaction was for US$770k worth of shares at a price of US$27.49 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$8.38. So it may not tell us anything about how insiders feel about the current share price.

Invitae insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:NVTA Insider Trading Volume March 21st 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. Invitae insiders own about US$12m worth of shares. That equates to 0.6% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Invitae Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Invitae insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 3 warning signs for Invitae you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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