Insiders who bought this year lost US$173k as SomaLogic, Inc. (NASDAQ:SLGC) sheds US$184m in value

By
Simply Wall St
Published
April 13, 2022
NasdaqGM:SLGC
Source: Shutterstock

Insiders who acquired US$432k worth of SomaLogic, Inc.'s (NASDAQ:SLGC) stock at an average price of US$11.32 in the past 12 months may be dismayed by the recent 13% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$259k which is not ideal.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for SomaLogic

SomaLogic Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Anne Margulies for US$229k worth of shares, at about US$11.46 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.78). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

SomaLogic insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:SLGC Insider Trading Volume April 13th 2022

SomaLogic is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does SomaLogic Boast High 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. Insiders own 5.5% of SomaLogic shares, worth about US$69m. 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 Do The SomaLogic Insider Transactions Indicate?

It doesn't really mean much that no insider has traded SomaLogic shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in SomaLogic and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for SomaLogic that deserve your attention before buying any shares.

Of course SomaLogic may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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