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Investors who take an interest in NeoGenomics, Inc. (NASDAQ:NEO) should definitely note that the Chief Financial Officer, Jeffrey Sherman, recently paid US$7.51 per share to buy US$150k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 14%.
NeoGenomics Insider Transactions Over The Last Year
Notably, that recent purchase by Jeffrey Sherman is the biggest insider purchase of NeoGenomics shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$8.13. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for NeoGenomics share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 53.41k shares for US$410k. But insiders sold 1.05k shares worth US$17k. In total, NeoGenomics insiders bought more than they sold over the last year. 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!
View our latest analysis for NeoGenomics
NeoGenomics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does NeoGenomics Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It appears that NeoGenomics insiders own 1.1% of the company, worth about US$11m. 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 NeoGenomics Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of NeoGenomics we think they are probably pretty confident of a bright future. 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 found 2 warning signs for NeoGenomics that deserve your attention before buying any shares.