We note that the Outset Medical, Inc. (NASDAQ:OM) General Counsel & Secretary, John Brottem, recently sold US$51k worth of stock for US$4.78 per share. That might not be a huge sum but it was 58% of their personal holding, so we find it a little discouraging.

The Last 12 Months Of Insider Transactions At Outset Medical

Over the last year, we can see that the biggest insider sale was by the Senior Vice President of Operations and R&D, Marc Nash, for US$291k worth of shares, at about US$429 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. The good news is that this large sale was at well above current price of US$3.85. So it may not tell us anything about how insiders feel about the current share price.

Outset Medical insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Outset Medical Boast High Insider Ownership?

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Outset Medical insiders own 1.9% of the company, worth about US$3.7m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Outset Medical Tell Us?

Insiders sold Outset Medical shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we'd only buy after very careful consideration. 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. To that end, you should learn about the 4 warning signs we've spotted with Outset Medical (including 1 which doesn't sit too well with us).

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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.

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