Insider Returns Down To US$40k As SOPHiA GENETICS' Stock Dips 11%

Insiders who bought SOPHiA GENETICS SA (NASDAQ:SOPH) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After taking the recent loss into consideration, the US$99.0k worth of stock they bought is now worth US$139.4k, indicating that their investment yielded a positive return.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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SOPHiA GENETICS Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive VP & CFO George Cardoza bought US$99k worth of shares at a price of US$4.95 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.97. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for SOPHiA GENETICS

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Have SOPHiA GENETICS Insiders Traded Recently?

In the last three months company SVP & Chief Sales Officer Kevin Puylaert divested US$1.7k worth of stock. That is not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.

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. We usually like to see fairly high levels of insider ownership. SOPHiA GENETICS insiders own about US$49m worth of shares. That equates to 8.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At SOPHiA GENETICS Tell Us?

We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in SOPHiA GENETICS and their transactions don't cause us concern. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - SOPHiA GENETICS has 1 warning sign we think you should be aware of.

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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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