We wouldn't blame Guardant Health, Inc. (NASDAQ:GH) shareholders if they were a little worried about the fact that AmirAli Talasaz, the Co-CEO & Director recently netted about US$6.3m selling shares at an average price of US$169. However, that sale only accounted for 2.0% of their holding, so arguably it doesn't say much about their conviction.

Guardant Health Insider Transactions Over The Last Year

Notably, that recent sale by Co-CEO & Director AmirAli Talasaz was not the only time they sold Guardant Health shares this year. Earlier in the year, they fetched US$113 per share in a -US$23m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$171. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 10% of AmirAli Talasaz's stake.

Over the last year we saw more insider selling of Guardant Health shares, than buying. 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!

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

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. Guardant Health insiders own about US$777m worth of shares (which is 3.5% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Guardant Health Tell Us?

The insider sales have outweighed the insider buying, at Guardant Health, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Guardant Health is showing 2 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

But note: Guardant Health may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.