This CG Oncology Insider Reduced Their Stake By 16%

Viewing insider transactions for CG Oncology, Inc.'s (NASDAQ:CGON ) 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.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for CG Oncology

CG Oncology Insider Transactions Over The Last Year

The Independent Director, Hong Fang Song, made the biggest insider sale in the last 12 months. That single transaction was for US$20m worth of shares at a price of US$28.00 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$29.08. 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. 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. It is worth noting that this sale was only 16% of Hong Fang Song's holding. Hong Fang Song was the only individual insider to sell shares in the last twelve months. Notably Hong Fang Song was also the biggest buyer, having purchased US$5.1m worth of shares.

Happily, we note that in the last year insiders paid US$5.1m for 266.47k shares. But insiders sold 926.25k shares worth US$28m. Hong Fang Song sold a total of 926.25k shares over the year at an average price of US$29.80. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insiders At CG Oncology Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at CG Oncology. Specifically, Independent Director Hong Fang Song ditched US$20m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does CG Oncology Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. CG Oncology insiders own about US$110m worth of shares (which is 5.0% of the company). 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 CG Oncology Tell Us?

An insider hasn't bought CG Oncology stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CG Oncology. At Simply Wall St, we've found that CG Oncology has 3 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course CG Oncology may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.