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Anyone interested in NeoGenomics, Inc. (NASDAQ:NEO) should probably be aware that the President of Clinical Services Division, Robert Shovlin, recently divested US$230k worth of shares in the company, at an average price of US$22.74 each. However, the silver lining is that the sale only reduced their total holding by 6.5%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At NeoGenomics
Over the last year, we can see that the biggest insider sale was by the Independent Director, Raymond Hipp, for US$3.4m worth of shares, at about US$22.61 per share. That means that an insider was selling shares at slightly below the current price (US$23.49). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 52% of Raymond Hipp's holding.
We note that in the last year insiders divested 341212 shares for a total of US$7.2m. In the last year NeoGenomics insiders didn't buy any company stock. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that NeoGenomics insiders own 3.3% of the company, worth about US$80m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About NeoGenomics Insiders?
Insiders sold NeoGenomics shares recently, but they didn't buy any. And even if we look to the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for NeoGenomics.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.