While Outset Medical, Inc. (NASDAQ:OM) shareholders have enjoyed a good week with stock up 43%, they need remain vigilant. Even though stock prices were relatively low, insiders elected to sell US$1.6m worth of stock in the last year, which could indicate some expected downturn.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Outset Medical
Outset Medical Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Commercial Officer, Steven Williamson, sold US$198k worth of shares at a price of US$19.83 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. The good news is that this large sale was at well above current price of US$5.16. So it may not tell us anything about how insiders feel about the current share price.
In total, Outset Medical insiders sold more than they bought over 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Outset Medical
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Outset Medical insiders have about 0.9% of the stock, worth approximately US$2.2m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Outset Medical Tell Us?
The fact that there have been no Outset Medical insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Outset Medical insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Outset Medical. Be aware that Outset Medical is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...
Of course Outset Medical 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 account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.