Pleasing Signs As A Number Of Insiders Buy GeneDx Holdings Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of GeneDx Holdings Corp. (NASDAQ:WGS), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for GeneDx Holdings
GeneDx Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Executive Chair of the Board Jason Ryan bought US$161k worth of shares at a price of US$1.54 per share. Even though the purchase was made at a significantly lower price than the recent price (US$1.80), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid US$231k for 134.74k shares. But insiders sold 10.39k shares worth US$68k. In total, GeneDx Holdings insiders bought more than they sold over the last year. They paid about US$1.72 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
GeneDx Holdings is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At GeneDx Holdings Have Bought Stock Recently
At GeneDx Holdings,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, two insiders bought US$176k worth of shares in that time. But we did see Executive Chair of the Board Jason Ryan sell shares worth US$134. Insiders have spent more buying shares than they have selling, so on balance we think they are are probably optimistic.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests GeneDx Holdings insiders own 2.2% of the company, worth about US$1.0m. We consider this fairly low insider ownership.
So What Do The GeneDx Holdings Insider Transactions Indicate?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that GeneDx Holdings insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 5 warning signs for GeneDx Holdings (2 don't sit too well with us) you should be aware of.
Of course GeneDx Holdings 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.
