Insiders who bought Precigen, Inc. (NASDAQ:PGEN) stock in the last 12 months recover some losses, but still down US$62k
Insiders who bought US$207k worth of Precigen, Inc. (NASDAQ:PGEN) stock in the last year recovered part of their losses as the stock rose by 13% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$62k.
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.
Check out our latest analysis for Precigen
Precigen Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Independent Director, Jeffrey Kindler, for US$115k worth of shares, at about US$2.30 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.28. So it may not shed much light on insider confidence at current levels. Jeffrey Kindler was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 113.64k shares worth US$207k. But insiders sold 50.00k shares worth US$115k. In total, Precigen insiders bought more than they sold over the last year. The average buy price was around US$1.82. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Precigen Have Bought Stock Recently
Over the last quarter, Precigen insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$156k worth of shares. That shows some optimism about the company's future.
Does Precigen 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. From our data, it seems that Precigen insiders own 2.3% of the company, worth about US$7.6m. However, it's possible that insiders might have an indirect interest through a more complex structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Precigen Insiders?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Precigen insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Precigen (1 is a bit unpleasant!) and we strongly recommend you look at them before investing.
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, but not derivative transactions.
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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.
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