Exagen Inc.'s (NASDAQ:XGN) value has fallen 15% in the last week, but insiders who sold US$576k 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$11.02 is still below the current share price.

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 Exagen

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, John Aballi, sold US$376k worth of shares at a price of US$11.82 per share. While insider selling is a negative, to us, it is more negative if the shares are sold 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$5.15. So it is hard to draw any strong conclusion from it.

Insiders in Exagen 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 Exagen better if I see some big insider buys.

Exagen Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Exagen. In total, CEO, President & Director John Aballi dumped US$376k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

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. Our data indicates that Exagen insiders own about US$6.4m worth of shares (which is 4.7% of the company). We do generally prefer see higher levels of insider ownership.

So What Do The Exagen Insider Transactions Indicate?

An insider sold Exagen shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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. While conducting our analysis, we found that Exagen has 3 warning signs and it would be unwise to ignore them.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.