Have Insiders Sold GRAIL Shares Recently?
Some GRAIL, Inc. (NASDAQ:GRAL) shareholders may be a little concerned to see that the CFO & Head of Corporate Development, Aaron Freidin, recently sold a substantial US$672k worth of stock at a price of US$85.01 per share. However, that sale only accounted for 7.6% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At GRAIL
Over the last year, we can see that the biggest insider sale was by the Advisor, Robert Ragusa, for US$6.2m worth of shares, at about US$49.92 per share. That means that an insider was selling shares at slightly below the current price (US$80.56). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 29% of Robert Ragusa's stake.
Insiders in GRAIL didn't buy any shares in 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 GRAIL
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Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. GRAIL insiders own about US$70m worth of shares. That equates to 2.0% of the company. 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 Do The GRAIL Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! 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. Be aware that GRAIL is showing 4 warning signs in our investment analysis, and 1 of those is significant...
But note: GRAIL 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.