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Insiders were net sellers of Illumina, Inc.'s (NASDAQ:ILMN ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Illumina
Illumina Insider Transactions Over The Last Year
Notably, that recent sale by Chief Commercial Officer Susan Tousi was not the only time they sold Illumina shares this year. Earlier in the year, they fetched US$210 per share in a -US$1.0m sale. So we know that an insider sold shares at around the present share price of US$192. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
Susan Tousi sold a total of 6.00k shares over the year at an average price of US$206. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Illumina Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Illumina. Specifically, Chief Commercial Officer Susan Tousi ditched US$1.2m 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.
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. We usually like to see fairly high levels of insider ownership. It appears that Illumina insiders own 0.2% of the company, worth about US$47m. 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 Does This Data Suggest About Illumina Insiders?
An insider hasn't bought Illumina stock in the last three months, but there was some selling. 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! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Illumina. For example - Illumina has 1 warning sign we think you should be aware of.