We wouldn't blame IonQ, Inc. (NYSE:IONQ) shareholders if they were a little worried about the fact that Christopher Monroe, the Co-Founder & Chief Scientist recently netted about US$2.2m selling shares at an average price of US$10.75. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.1%.
View our latest analysis for IonQ
The Last 12 Months Of Insider Transactions At IonQ
Notably, that recent sale by Christopher Monroe is the biggest insider sale of IonQ shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$10.65. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
In the last year IonQ 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. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like IonQ better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does IonQ Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that IonQ insiders own 9.3% of the company, worth about US$200m. 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 IonQ Tell Us?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing IonQ. Case in point: We've spotted 3 warning signs for IonQ you should be aware of.
But note: IonQ 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, but not derivative transactions.
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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.
