This Insider Has Just Sold Shares In Sera Prognostics

Anyone interested in Sera Prognostics, Inc. (NASDAQ:SERA) should probably be aware that the President, Evguenia Lindgardt, recently divested US$225k worth of shares in the company, at an average price of US$8.03 each. However, the silver lining is that the sale only reduced their total holding by 2.9%, so we're hesitant to read anything much into it, on its own.

Check out our latest analysis for Sera Prognostics

Sera Prognostics Insider Transactions Over The Last Year

Notably, that recent sale by Evguenia Lindgardt is the biggest insider sale of Sera Prognostics shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$8.10, 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 2.9%of Evguenia Lindgardt's holding.

Insiders in Sera Prognostics didn't buy any shares in the last year. 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. 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$8.0m worth of shares (which is 3.1% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Sera Prognostics Insider Transactions Indicate?

Insiders sold Sera Prognostics shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. While we like knowing 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 4 warning signs for Sera Prognostics (of which 2 make us uncomfortable!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.