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$5.0m selling shares at an average price of US$100. However, that sale only accounted for 2.3% of their holding, so arguably it doesn't say much about their conviction.

Guardant Health Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Helmy Eltoukhy, for US$18m worth of shares, at about US$59.93 per share. That means that an insider was selling shares at slightly below the current price (US$94.92). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 11% of Helmy Eltoukhy's stake.

Guardant Health 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!

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Does Guardant Health Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Guardant Health insiders own 3.8% of the company, worth about US$478m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Guardant Health Insiders?

Insiders haven't bought Guardant Health stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.

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.