Anyone interested in Veracyte, Inc. (NASDAQ:VCYT) should probably be aware that the Director, Evan Jones, recently divested US$396k worth of shares in the company, at an average price of US$26.38 each. However, the silver lining is that the sale only reduced their total holding by-6.5%, so we’re hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Veracyte
Notably, that recent sale by Evan Jones is the biggest insider sale of Veracyte shares that we’ve seen in the last year. That means that an insider was selling shares at slightly below the current price (US$24.73). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. This single sale was just 24.6% of Evan Jones’s stake.
Evan Jones ditched 90000 shares over the year. The average price per share was US$21.37. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Veracyte insiders own about US$13m worth of shares. That equates to 1.1% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Veracyte Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. While insiders do own shares, they don’t own a heap, and they have been selling. We’re in no rush to buy! Of course, the future is what matters most. So if you are interested in Veracyte, you should check out this free report on analyst forecasts for the company.
But note: Veracyte 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, but not derivative transactions.
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If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.