By selling US$8.2m worth of NeoGenomics, Inc. (NASDAQ:NEO) stock at an average sell price of US$40.33 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$179m over the past week after the stock price dropped 8.0%, although insiders were able to minimize their losses
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At NeoGenomics
The President & COO of Lab Operations, George Cardoza, made the biggest insider sale in the last 12 months. That single transaction was for US$8.1m worth of shares at a price of US$40.39 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$16.46. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of NeoGenomics shares, than buying. 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 are like me, then you will not want to miss this free list of growing companies that insiders are buying.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that NeoGenomics insiders own 3.7% of the company, worth about US$72m. 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 NeoGenomics Insiders?
It doesn't really mean much that no insider has traded NeoGenomics shares in the last quarter. Our analysis of NeoGenomics insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. 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. At Simply Wall St, we've found that NeoGenomics has 4 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
But note: NeoGenomics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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.