We'd be surprised if Sight Sciences, Inc. (NASDAQ:SGHT) shareholders haven't noticed that the Co-Founder, Paul Badawi, recently sold US$268k worth of stock at US$9.05 per share. However, the silver lining is that the sale only reduced their total holding by 0.5%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Sight Sciences
In fact, the recent sale by Co-Founder Paul Badawi was not their only sale of Sight Sciences shares this year. Earlier in the year, they fetched US$7.48 per share in a -US$277k sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$8.47. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 0.6% of Paul Badawi's holding.
All up, insiders sold more shares in Sight Sciences than they bought, over the last year. The average sell price was around US$6.31. It's not too encouraging to see that insiders have sold at below the current price. But we wouldn't put too much weight on the insider selling. 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!
View our latest analysis for Sight Sciences
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. We usually like to see fairly high levels of insider ownership. Sight Sciences insiders own about US$91m worth of shares. That equates to 19% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Sight Sciences Insider Transactions Indicate?
Insiders sold Sight Sciences shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. For example - Sight Sciences has 2 warning signs we think you should be aware of.
Of course Sight Sciences may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.