Yahoo Finance Insiders Buying GeneDx Holdings Might Wish They Invested More, Stock Gains 12%
GeneDx Holdings Corp. (NASDAQ:WGS) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 12%, resulting in a US$77m rise in the company's market capitalisation, translating to a gain of 1,639% on their initial investment. As a result, their original purchase of US$201.8k worth of stock is now worth US$3.51m.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for GeneDx Holdings
GeneDx Holdings Insider Transactions Over The Last Year
The Chairman of the Board Jason Ryan made the biggest insider purchase in the last 12 months. That single transaction was for US$161k worth of shares at a price of US$1.54 each. We do like to see buying, but this purchase was made at well below the current price of US$27.04. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 129.74k shares worth US$202k. But they sold 4.59k shares for US$41k. Overall, GeneDx Holdings insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of GeneDx Holdings
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that GeneDx Holdings insiders own 2.1% of the company, worth about US$14m. 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 GeneDx Holdings Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think GeneDx Holdings insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for GeneDx Holdings you should be aware of, and 1 of them makes us a bit uncomfortable.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 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.
