Don't Ignore The Insider Selling In Sera Prognostics

Anyone interested in Sera Prognostics, Inc. (NASDAQ:SERA) should probably be aware that the President, Evguenia Lindgardt, recently divested US$122k worth of shares in the company, at an average price of US$4.12 each. That sale was 18% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Sera Prognostics

The Last 12 Months Of Insider Transactions At Sera Prognostics

Notably, that recent sale by President Evguenia Lindgardt was not the only time they sold Sera Prognostics shares this year. Earlier in the year, they fetched US$9.37 per share in a -US$364k sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$4.04. So it may not tell us anything about how insiders feel about the current share price.

Insiders in Sera Prognostics didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. 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 small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Sera Prognostics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by 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. Our data indicates that Sera Prognostics insiders own about US$7.5m worth of shares (which is 5.0% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Sera Prognostics Insiders?

Insiders haven't bought Sera Prognostics stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. 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. 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. At Simply Wall St, we've found that Sera Prognostics has 4 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

But note: Sera Prognostics 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.