Sera Prognostics, Inc.'s (NASDAQ:SERA) value has fallen 10% in the last week, but insiders who sold US$620k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$2.45 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Sera Prognostics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President, Zhenya Lindgardt, for US$86k worth of shares, at about US$3.04 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. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.69. So it is hard to draw any strong conclusion from it.

Sera Prognostics 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Sera Prognostics Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Sera Prognostics shares. In total, insiders sold US$96k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of Sera Prognostics

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$3.1m worth of Sera Prognostics stock, about 4.6% of the company. I generally like to see higher levels of ownership.

So What Do The Sera Prognostics Insider Transactions Indicate?

Insiders sold Sera Prognostics shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly 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. To help with this, we've discovered 4 warning signs (1 is a bit concerning!) that you ought to be aware of before buying any shares in Sera Prognostics.

Of course Sera Prognostics 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.

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.