While it's been a great week for Inogen, Inc. (NASDAQ:INGN) shareholders after stock gained 28%, company insiders might have missed out on those gains after selling stock earlier this year. Had they waited, they might have been able to sell their stock at much higher prices and thereby received a better value on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Inogen
Over the last year, we can see that the biggest insider sale was by the insider, Jason Somer, for US$86k worth of shares, at about US$8.56 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$11.09. 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. We note that the biggest single sale was 69% of Jason Somer's holding. Jason Somer was the only individual insider to sell over the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Inogen
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$1.8m worth of Inogen stock, about 0.8% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Inogen Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Inogen are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Inogen. Every company has risks, and we've spotted 2 warning signs for Inogen you should know about.
Of course Inogen 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.
