Trade Alert: Independent Director Of Precigen Jeffrey Kindler Has Sold Stock
Some Precigen, Inc. (NASDAQ:PGEN) shareholders may be a little concerned to see that the Independent Director, Jeffrey Kindler, recently sold a substantial US$1.4m worth of stock at a price of US$7.44 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 92% of their entire holding.
Precigen Insider Transactions Over The Last Year
The Executive Chairman, Randal Kirk, made the biggest insider sale in the last 12 months. That single transaction was for US$7.7m worth of shares at a price of US$3.30 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$6.95. 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. This single sale was just 15% of Randal Kirk's stake.
Over the last year, we can see that insiders have bought 37.63k shares worth US$162k. But they sold 5.00m shares for US$18m. All up, insiders sold more shares in Precigen than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Check out our latest analysis for Precigen
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Precigen
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Precigen insiders own 12% of the company, currently worth about US$291m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Precigen Insiders?
The stark truth for Precigen 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. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Precigen.
But note: Precigen 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.
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.