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Have Insiders Been Selling Quanterix Corporation (NASDAQ:QTRX) Shares This Year?

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Gavin Beck
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We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Quanterix Corporation (NASDAQ:QTRX).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, such insiders must disclose their trading activities, and not trade on inside information.

We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.

See our latest analysis for Quanterix

The Last 12 Months Of Insider Transactions At Quanterix

Senior VP of Finance & Corporate Development Ernest Orticerio made the biggest insider sale in the last 12 months. That single transaction was for US$487k worth of shares at a price of US$19.49 each. That means that an insider was selling shares at around the current price of US$18.70. They might be selling for a variety of reasons, but it’s hard to argue this is a bullish sign. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. Ernest Orticerio was the only individual insider to sell over the last year.

The chart below shows insider transactions over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGM:QTRX Insider Trading December 20th 18
NasdaqGM:QTRX Insider Trading December 20th 18

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Quanterix Insiders Are Selling The Stock

Over the last three months, we’ve seen notably more insider selling, than insider buying, at Quanterix. In that time, Ernest Orticerio dumped US$487k worth of shares. On the other hand we note John Connolly bought US$50k worth of shares, as previously mentioned. Because the selling vastly outweighs the buying, we’d say this is a somewhat bearish sign.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Quanterix insiders own 12% of the company, currently worth about US$50m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Quanterix Insider Transactions Indicate?

The stark truth for Quanterix is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. While insiders do own shares, they don’t own a heap, and they have been selling. So we’d only buy after careful consideration. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Quanterix 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.

To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.