By selling US $ 670k worth of Semler Scientific, Inc. (NASDAQ: SMLR) stock at an average sell price of US $ 110 over the last year, insiders seemed to have made the most of their holdings. The company’s market cap plunged by US $ 35m after price dropped by 10% last week but insiders were able to limit their loss to an extent.
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 Semler Scientific
The Last 12 Months Of Insider Transactions At Semler Scientific
The insider, Hui-Chung Chang, made the biggest insider sale in the last 12 months. That single transaction was for US $ 435k worth of shares at a price of US $ 111 each. We generally do not like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US $ 45.09). So it may not tell us anything about how insiders feel about the current share price.
In the last year Semler Scientific insiders did not buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. Semler Scientific insiders own about US $ 79m worth of shares. That equates to 26% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Semler Scientific Insider Transactions Indicate?
It does not really mean much that no insider has traded Semler Scientific shares in the last quarter. Still, the insider transactions at Semler Scientific in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. Be aware that Semler Scientific is showing 2 warning signs in our investment analysisand 1 of those should not be ignored …
Of course Semler Scientific may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently have accounts 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 into account 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.