This Insider Has Just Sold Shares In VolitionRx Limited (NYSEMKT:VNRX)

We note that the VolitionRx Limited (NYSEMKT:VNRX) Chief Medical Officer & CEO of Volition America, Jason Terrell, recently sold US$54k worth of stock for US$5.37 per share. It wasn't a huge sale, but it did reduce their holding by 22%. This does not instill confidence.

See our latest analysis for VolitionRx

The Last 12 Months Of Insider Transactions At VolitionRx

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, Martin Faulkes, for US$209k worth of shares, at about US$3.21 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$6.27. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 3.4% of Martin Faulkes's holding.

In total, VolitionRx insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does VolitionRx 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. VolitionRx insiders own about US$32m worth of shares. That equates to 10% 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 VolitionRx Insiders?

An insider sold VolitionRx shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. 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. Every company has risks, and we've spotted 4 warning signs for VolitionRx (of which 1 is significant!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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