Have Genelux Insiders Been Selling Stock?

We'd be surprised if Genelux Corporation (NASDAQ:GNLX) shareholders haven't noticed that an insider, Aladar Szalay, recently sold US$256k worth of stock at US$3.59 per share. However, the silver lining is that the sale only reduced their total holding by 1.7%, so we're hesitant to read anything much into it, on its own.

See our latest analysis for Genelux

Genelux Insider Transactions Over The Last Year

Notably, that recent sale by insider Aladar Szalay was not the only time they sold Genelux shares this year. Earlier in the year, they fetched US$25.49 per share in a -US$1.9m sale. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.45). So it may not shed much light on insider confidence at current levels.

Genelux 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Genelux

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. It appears that Genelux insiders own 25% of the company, worth about US$23m. 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 Do The Genelux Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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. Be aware that Genelux is showing 6 warning signs in our investment analysis, and 1 of those is concerning...

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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.