Some CG Oncology, Inc. (NASDAQ:CGON) shareholders may be a little concerned to see that the Independent Director, Hong Fang Song, recently sold a substantial US$20m worth of stock at a price of US$28.00 per share. That's a big disposal, and it decreased their holding size by 16%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At CG Oncology

Notably, that recent sale by Hong Fang Song is the biggest insider sale of CG Oncology shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$28.02). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 16% of Hong Fang Song's stake.

Over the last year, we can see that insiders have bought 266.47k shares worth US$5.1m. But they sold 926.25k shares for US$28m. Hong Fang Song divested 926.25k shares over the last 12 months at an average price of US$29.80. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of CG Oncology

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that CG Oncology insiders own 6.6% of the company, worth about US$128m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At CG Oncology Tell Us?

An insider sold CG Oncology shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. Be aware that CG Oncology is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: CG Oncology may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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