Anyone interested in Myriad Genetics, Inc. (NASDAQ:MYGN) should probably be aware that a company insider, Margaret Ancona, recently divested US$321k worth of shares in the company, at an average price of US$27.82 each. In particular, we note that the sale equated to a 52% reduction in their position size, which doesn't exactly instill confidence.
The Last 12 Months Of Insider Transactions At Myriad Genetics
Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, Paul Diaz, for US$5.7m worth of shares, at about US$25.21 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$28.12. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 40% of Paul Diaz's holding.
In the last year Myriad Genetics insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Insider Ownership Of Myriad Genetics
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. Insiders own 2.3% of Myriad Genetics shares, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Myriad Genetics Insiders?
An insider sold Myriad Genetics shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Myriad Genetics and understanding these should be part of your investment process.
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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.