Even though Pacific Biosciences of California, Inc. (NASDAQ:PACB) has fallen by 12% over the past week , insiders who sold US$3.1m worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$7.73 is still below the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

The Last 12 Months Of Insider Transactions At Pacific Biosciences of California

In the last twelve months, the biggest single sale by an insider was when the President, Christian O. Henry, sold US$980k worth of shares at a price of US$10.12 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.76. So it may not shed much light on insider confidence at current levels.

Over the last year we saw more insider selling of Pacific Biosciences of California shares, than buying. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Pacific Biosciences of California Insiders Are Selling The Stock

The last three months saw some Pacific Biosciences of California insider selling. VP & Chief Accounting Officer Michele Farmer sold just US$11k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the volume sold is so low that it really doesn't bother us.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Pacific Biosciences of California insiders own 0.5% of the company, worth about US$2.7m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Pacific Biosciences of California Insiders?

Our data shows a little more insider selling, but no insider buying, in the last three months. But the sales were small, so we're not concerned. Recent sales exacerbate our caution arising from analysis of Pacific Biosciences of California insider transactions. And usually insiders own more stock in the company, according to our data. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 3 warning signs for Pacific Biosciences of California (1 makes us a bit uncomfortable) you should be aware of.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com