Some GRAIL, Inc. (NASDAQ:GRAL) shareholders may be a little concerned to see that the CEO & Director, Robert Ragusa, recently sold a substantial US$1.7m worth of stock at a price of US$14.02 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 51% of their entire holding.
The Last 12 Months Of Insider Transactions At GRAIL
In fact, the recent sale by Robert Ragusa was the biggest sale of GRAIL shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of US$14.76, an insider wanted to cash in some shares. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 51% of Robert Ragusa's holding.
Insiders in GRAIL 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. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of GRAIL
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. From looking at our data, insiders own US$1.3m worth of GRAIL stock, about 0.3% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About GRAIL Insiders?
Insiders haven't bought GRAIL stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of GRAIL.
Of course GRAIL 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 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.
