Don't Ignore The Insider Selling In Cryoport

We'd be surprised if Cryoport, Inc. (NASDAQ:CYRX) shareholders haven't noticed that the Independent Director, Ramkumar Mandalam, recently sold US$116k worth of stock at US$9.99 per share. That sale was 17% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Cryoport

Over the last year, we can see that the biggest insider sale was by the Chairman, Jerrell Shelton, for US$1.0m worth of shares, at about US$6.81 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$9.40. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 14% of Jerrell Shelton's holding.

Insiders in Cryoport 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!

View our latest analysis for Cryoport

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Does Cryoport Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Cryoport insiders own about US$16m worth of shares. That equates to 3.3% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Cryoport Insider Transactions Indicate?

An insider sold Cryoport shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Cryoport.

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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.

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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.