Have Organogenesis Holdings Insiders Been Selling Stock?

Some Organogenesis Holdings Inc. (NASDAQ:ORGO) shareholders may be a little concerned to see that the Director, Glenn Nussdorf, recently sold a substantial US$1.6m worth of stock at a price of US$5.31 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.4%.

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The Last 12 Months Of Insider Transactions At Organogenesis Holdings

Notably, that recent sale by Glenn Nussdorf is the biggest insider sale of Organogenesis Holdings shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$5.18. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Happily, we note that in the last year insiders paid US$1.8m for 610.76k shares. But they sold 668.31k shares for US$2.9m. In total, Organogenesis Holdings insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Organogenesis Holdings

I will like Organogenesis Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Organogenesis Holdings Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Organogenesis Holdings insiders own 38% of the company, worth about US$248m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Organogenesis Holdings Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. 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. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 3 warning signs for Organogenesis Holdings (of which 1 is a bit unpleasant!) you should know about.

But note: Organogenesis Holdings 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 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.