Despite a 36% gain in Pacific Biosciences of California, Inc.'s (NASDAQ:PACB) stock price this week, shareholders shouldn't let up. The fact that insiders chose to dispose of US$864k worth of stock in the past 12 months even though prices were relatively low could be indicative of some anticipated weakness.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

The Last 12 Months Of Insider Transactions At Pacific Biosciences of California

In the last twelve months, the biggest single sale by an insider was when the President, Christian O. Henry, sold US$488k worth of shares at a price of US$1.88 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$2.39. 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. 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. It is worth noting that this sale was only 28% of Christian O. Henry's holding.

Insiders in Pacific Biosciences of California didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Pacific Biosciences of California better if I see some big insider buys.

Insider Ownership Of Pacific Biosciences of California

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of Pacific Biosciences of California shares, worth about US$5.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Pacific Biosciences of California Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Pacific Biosciences of California are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Pacific Biosciences of California.

But note: Pacific Biosciences of California 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.