Veracyte, Inc.'s (NASDAQ:VCYT) recent US$201m market cap decline means a loss of US$24k for insiders who bought this year

The recent price decline of 11% in Veracyte, Inc.'s (NASDAQ:VCYT) stock may have disappointed insiders who bought US$70k worth of shares at an average price of US$35.19 in the past 12 months. Insiders invest with the hopes of seeing their money grow in value over time. However, as a result of recent losses, their initial investment is now only worth US$46k, which is not what they expected.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Veracyte

Veracyte Insider Transactions Over The Last Year

The Independent Director Jens Holstein made the biggest insider purchase in the last 12 months. That single transaction was for US$70k worth of shares at a price of US$35.19 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.06). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Jens Holstein.

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!

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

Does Veracyte Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Veracyte insiders own 0.7% of the company, worth about US$12m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Veracyte Tell Us?

It doesn't really mean much that no insider has traded Veracyte shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Veracyte insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Veracyte. Case in point: We've spotted 3 warning signs for Veracyte you should be aware of.

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, but not derivative transactions.

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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.