Investors should note that the Chief Financial Officer of Fulgent Genetics Inc., Paul Kim, recently made $64,000 selling stock and received an average price of $35.89. On the upside, that’s just a small sale and only reduced their stake by 2.2%.
Fulgent Genetics Insider Transactions in the Last Year
In the past 12 months, the largest sale by an insider was when the COO & President, Jian Xie, sold $583,000 worth of stock at a price of $58.29 per share. In general, we don’t like insider selling, but the lower the selling price, the more it worries us. The good news is that this big sale was well above the current price of US$37.05. So it may not tell us anything about how insiders feel about the current share price.
In the past year, Fulgent Genetics insiders did not buy any of the company’s stock. You can see insider trading (of companies and individuals) over the past year in the chart below. If you click on the chart you can see all the individual trades, including the share price, individual and the date!
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Insider property of Fulgent Genetics
Another way to test alignment between a company’s leaders and other shareholders is to see how many shares they own. High levels of insider ownership often make corporate leaders more aware of shareholder interests. Fulgent Genetics insiders own 32% of the company, which is currently worth about $363 million based on its recent share price. This type of significant insider ownership generally increases the likelihood that the company is being run in the best interests of all shareholders.
So what does Fulgent Genetics’ insider trading indicate?
Insiders recently sold stocks, but they didn’t buy. And even looking at the past year, we haven’t seen any purchases. The company boasts a high degree of insider ownership, but we’re a little hesitant given its history of stock sales. In addition to knowing about insider trading, it is helpful to identify the risks that Fulgent Genetics faces. For example, Fulgent Genetics has 3 warning signs (and 1 that doesn’t suit us very well) which we think you should know.
Naturally, you may find a fantastic investment by looking elsewhere. So check this out free list of interesting companies.
For the purposes of this section, insiders are those persons who report their transactions to the relevant regulatory authority. We currently take into account open market transactions and private placements, but not derivatives transactions.
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