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Insiders who bought Guardant Health, Inc. (NASDAQ:GH) stock lover the last 12 months are probably not as affected by last week’s 12% loss. Even after accounting for the recent loss, the US$5.0m worth of stock purchased by them is now worth US$5.7m or in other words, their investment continues to give good returns.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Guardant Health
The Last 12 Months Of Insider Transactions At Guardant Health
In the last twelve months, the biggest single purchase by an insider was when Co-CEO & Director AmirAli Talasaz bought US$2.5m worth of shares at a price of US$26.40 per share. Even though the purchase was made at a significantly lower price than the recent price (US$29.53), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Over the last year, we can see that insiders have bought 193.03k shares worth US$5.0m. On the other hand they divested 11.29k shares, for US$424k. Overall, Guardant Health insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Guardant Health Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Guardant Health shares. Specifically, Chief Information Officer Kumud Kalia ditched US$69k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Does Guardant Health Boast High 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. It's great to see that Guardant Health insiders own 4.2% of the company, worth about US$154m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.