CEO & Director Of GRAIL Sold 51% Of Their Shares

Some GRAIL, Inc. (NASDAQ:GRAL) shareholders may be a little concerned to see that the CEO & Director, Robert Ragusa, recently sold a substantial US$1.7m worth of stock at a price of US$14.02 per share. That diminished their holding by a very significant 51%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for GRAIL

The Last 12 Months Of Insider Transactions At GRAIL

In fact, the recent sale by Robert Ragusa was the biggest sale of GRAIL shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was slightly below the current price of US$14.27, 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 51% of Robert Ragusa's holding.

In the last year GRAIL insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$3.1m worth of GRAIL stock, about 0.7% of the company. We consider this fairly low insider ownership.

So What Do The GRAIL Insider Transactions Indicate?

Insiders sold GRAIL shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing GRAIL. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of GRAIL.

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 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.