Quite a few Sientra, Inc. (NASDAQ:SIEN) insiders sold their shares over the past year, which may be a cause for concern. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Sientra Insider Transactions Over The Last Year
In fact, the recent sale by Senior VP Oliver Bennett was not their only sale of Sientra shares this year. They previously made an even bigger sale of -US$50k worth of shares at a price of US$7.49 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place 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$5.78. So it is hard to draw any strong conclusion from it.
Happily, we note that in the last year insiders paid US$59k for 8.70k shares. But they sold 27.68k shares for US$167k. Over the last year we saw more insider selling of Sientra shares, than buying. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insiders at Sientra Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Sientra. They bought US$59k worth in that time. But Senior VP Oliver Bennett sold US$45k worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.3% of Sientra shares, worth about US$7.6m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Do The Sientra Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. Recent insider selling makes us a little nervous, in light of the broader picture of Sientra insider transactions. And usually insiders own more stock in the company, according to our data. 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. When we did our research, we found 4 warning signs for Sientra (1 is a bit concerning!) that we believe deserve your full attention.
But note: Sientra 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, but not derivative transactions.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
In This StorySIEN
Latest Nasdaq-Listed Companies Videos
- Shareholders Will Probably Hold Off On Increasing Microsoft Corporation's (NASDAQ:MSFT) CEO Compensation For The Time Being
- Here's Why We're A Bit Worried About Qualigen Therapeutics' (NASDAQ:QLGN) Cash Burn Situation
- Insiders at NRx Pharmaceuticals, Inc. (NASDAQ:NRXP) must be relieved they sold stock as market valuation descends to US$268m
- Altimeter is on track to Grab its target