We'd be surprised if NeoGenomics, Inc. (NASDAQ:NEO) shareholders haven't noticed that the President & COO, Warren Stone, recently sold US$277k worth of stock at US$12.50 per share. That sale was 15% of their holding, so it does make us raise an eyebrow.

The Last 12 Months Of Insider Transactions At NeoGenomics

In fact, the recent sale by Warren Stone was the biggest sale of NeoGenomics shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$12.97. 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. This single sale was just 15% of Warren Stone's stake.

Over the last year, we can see that insiders have bought 113.01k shares worth US$798k. But insiders sold 22.13k shares worth US$277k. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. NeoGenomics insiders own about US$21m worth of shares. That equates to 1.3% 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 Does This Data Suggest About NeoGenomics Insiders?

An insider hasn't bought NeoGenomics stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So we're happy enough to look past some selling. 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.

But note: NeoGenomics 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.