Anyone interested in Sera Prognostics, Inc. (NASDAQ:SERA) should probably be aware that the President, Evguenia Lindgardt, recently divested US$218k worth of shares in the company, at an average price of US$8.11 each. The eyebrow raising move amounted to a reduction of 41% in their holding.
Sera Prognostics Insider Transactions Over The Last Year
In fact, the recent sale by President Evguenia Lindgardt was not their only sale of Sera Prognostics shares this year. Earlier in the year, they fetched US$9.37 per share in a -US$364k sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$7.27. So it may not tell us anything about how insiders feel about the current share price.
Sera Prognostics insiders didn't buy any shares over 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?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 3.7% of Sera Prognostics shares, worth about US$9.0m, according to our data. 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 consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! 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've found that Sera Prognostics has 5 warning signs (1 is a bit 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com