A Singular Genomics Systems, Inc. (NASDAQ:OMIC) insider increased their holdings by 16% last year
From what we can see, insiders were net buyers in Singular Genomics Systems, Inc.'s (NASDAQ:OMIC ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Singular Genomics Systems
The Last 12 Months Of Insider Transactions At Singular Genomics Systems
Over the last year, we can see that the biggest insider purchase was by Independent Vice Chairman of the Board & Lead Director Michael Pellini for US$89k worth of shares, at about US$3.30 per share. That means that even when the share price was higher than US$2.08 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Michael Pellini was the only individual insider to buy during the last year.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Singular Genomics Systems 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.
Insider Ownership Of Singular Genomics Systems
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Insiders own 16% of Singular Genomics Systems shares, worth about US$24m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Singular Genomics Systems Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Singular Genomics Systems shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Singular Genomics Systems insiders are doubting the company, and they do own shares. 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. Case in point: We've spotted 4 warning signs for Singular Genomics Systems you should be aware of, and 2 of them are potentially serious.
Of course Singular Genomics Systems 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, but not derivative transactions.
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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.
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