We note that the Neuronetics, Inc. (NASDAQ:STIM) President, Keith Sullivan, recently sold US$60k worth of stock for US$3.08 per share. On the bright side, that's just a small sale and only reduced their holding by 3.4%.
See our latest analysis for Neuronetics
Neuronetics Insider Transactions Over The Last Year
In fact, the recent sale by President Keith Sullivan was not their only sale of Neuronetics shares this year. Earlier in the year, they fetched US$5.58 per share in a -US$214k sale. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$3.04. So it is hard to draw any strong conclusion from it.
In total, Neuronetics insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Neuronetics insiders own 4.9% of the company, worth about US$4.3m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Neuronetics Insiders?
An insider hasn't bought Neuronetics stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Neuronetics. For example, Neuronetics has 6 warning signs (and 1 which can't be ignored) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.