The latest data from GuruFocus shows that President, CEO and Director, 10% Owner Laura Niklason sold 239538 shares of Humacyte Inc (HUMA) on 2022-12-16.
Investors may be concerned when an insider sells shares. It could be a sign that insiders are turning bearish on the stock of their own company. Insiders have a unique advantage in determining the value of their company, so when they begin selling, investors pay attention. Let’s take a look at this insider sell to see if Humacyte Inc deserves some skepticism from investors.
Laura Niklason’s trades
Over the past year, Laura Niklason has sold 2461768 shares in total.
This means that Laura Niklason has been selling their company’s stock over a longer term. This could actually be a positive sign for the stock, contrary to expectations. When insiders sell frequently, it could be because their company issues a lot of stock options to pay executives. The executives will then sell some of the new shares for cash. Of course, it is also possible that the selling was due to insiders becoming more bearish on the stock. Investors should be cautious when evaluating insider selling.
Insider trends
Even if one insider is selling, that doesn’t mean that other insiders are bearish on the stock. Are other insiders selling the stock as well, or have the company’s top executives and owners been doing more buying recently?
The insider transaction history for Humacyte Inc shows than there have been 13 insiders buys in total over the past year. Meanwhile, there have been 9 insider sells over the same timeframe.
We like to see more insider buying than selling, since this indicates a bullish trend among the company’s top executives and owners. If more insiders are buying the stock then selling it, then investors may find that the recent sell from Laura Niklason is not cause for concern.
Please note, the numbers and facts quoted are as of the writing of this article and may not factor in the latest trading data or company announcements.
When GuruFocus covers insider information, we only track open market or the private purchase and sale of common stock with the transaction code of P or S. Therefore, all the transactions mentioned in this article are only the ones with transaction code of P or S.
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