Insiders probably made the right decision selling US$696k worth of shares earlier this year as Personalis, Inc.'s (NASDAQ:PSNL)) stock dips by 18%.

By
Simply Wall St
Published
March 15, 2022
NasdaqGM:PSNL
Source: Shutterstock

Insiders at Personalis, Inc. (NASDAQ:PSNL) sold US$696k worth of stock at an average price of US$17.62 a share over the past year, making the most of their investment. The company's market worth decreased by US$76m over the past week after the stock price dropped 18%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Personalis

The Last 12 Months Of Insider Transactions At Personalis

In the last twelve months, the biggest single sale by an insider was when the Senior VP & CFO, Aaron Tachibana, sold US$84k worth of shares at a price of US$21.92 per share. 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$7.58. So it is hard to draw any strong conclusion from it.

In total, Personalis insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGM:PSNL Insider Trading Volume March 15th 2022

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Insiders at Personalis Have Sold Stock Recently

Over the last three months, we've seen notably more insider selling, than insider buying, at Personalis. In that time, insiders dumped US$129k worth of shares. On the other hand we note insider Peter Nieh bought US$49k worth of shares , as previously mentioned . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.9% of Personalis shares, worth about US$6.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Personalis Tell Us?

The insider sales have outweighed the insider buying, at Personalis, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. When you combine this with the relatively low insider ownership, we are very cautious about the stock. We'd certainly practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Personalis. Be aware that Personalis is showing 5 warning signs in our investment analysis, and 1 of those is potentially serious...

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, but not derivative transactions.

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