Have Guardant Health Insiders Been Selling Stock?

We wouldn't blame Guardant Health, Inc. (NASDAQ:GH) shareholders if they were a little worried about the fact that Christopher Freeman, a company insider, recently netted about US$3.2m selling shares at an average price of US$103. That diminished their holding by a very significant 55%, which arguably implies a strong desire to reallocate capital.

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The Last 12 Months Of Insider Transactions At Guardant Health

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Helmy Eltoukhy, sold US$18m worth of shares at a price of US$59.93 per share. That means that an insider was selling shares at slightly below the current price (US$103). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 11% of Helmy Eltoukhy's holding.

Insiders in Guardant Health didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

See our latest analysis for Guardant Health

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Insider Ownership Of Guardant Health

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Guardant Health insiders own 3.8% of the company, worth about US$496m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Guardant Health Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Guardant Health has 3 warning signs (1 is significant!) that deserve your attention before going any further with your analysis.

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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.