Selling Bio Green Med Solution Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Bio Green Med Solution, Inc.'s (NASDAQ:BGMS) value has fallen 13% in the last week, but insiders who sold US$4.8m worth of stock over the last year have had less success. Given that the average selling price of US$3.51 is still lower than the current share price, insiders would probably have been better off keeping their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

The Last 12 Months Of Insider Transactions At Bio Green Med Solution

Over the last year, we can see that the biggest insider sale was by the insider, David Lazar, for US$1.2m worth of shares, at about US$9.65 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$1.44. So it may not shed much light on insider confidence at current levels.

In the last year Bio Green Med Solution insiders didn't buy any company stock. 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!

View our latest analysis for Bio Green Med Solution

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Bio Green Med Solution Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Bio Green Med Solution shares. In total, insiders dumped US$3.2m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does Bio Green Med Solution Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Bio Green Med Solution insiders own 55% of the company, currently worth about US$4.1m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Bio Green Med Solution Insiders?

Insiders sold Bio Green Med Solution shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Bio Green Med Solution is showing 6 warning signs in our investment analysis, and 5 of those are a bit concerning...

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.