GRAIL CEO Sells 7,239 Shares for ~$498,600

Robert P. Ragusa, Chief Executive Officer of GRAIL (NASDAQ:GRAL), reported the open-market sale of 7,239 shares for a transaction value of approximately $498,600 on Oct. 15, according to an SEC Form 4 filing.

Transaction summary

Transaction value based on SEC Form 4 weighted average purchase price ($68.88); post-transaction value based on $75.52. No GAAP or non-GAAP designation is specified for these values.

Key questions

How does the transaction size compare to the CEO’s recent sales activity?
This sale of 7,239 shares closely aligns with the recent median sell transaction size of 7,625 shares from March 5, 2025 to October 15, 2025, indicating stable trade sizing. The shares sold represented 0.99% of direct holdings prior to the trade on Oct. 15, consistent with the recent pattern of sub-1% incremental sales.

What is the significance of the CEO’s remaining direct stake?
Following the sale, Robert Ragusa retains 727,388 shares, with a direct stake valued at approximately $54.9 million as of Oct. 15 (based on the closing price on that date). This remaining stake continues to represent a substantial holding, representing 2.1% of the company’s outstanding shares.

How did the timing of the transaction relate to the company’s recent share price performance?
The shares were sold at a weighted average price of around $68.88 per share, compared to the stock's closing price of $75.52 on Oct. 15. As of that date, the stock had delivered a 439.0% one-year total return (calendar year basis), highlighting a period of significant appreciation.

Does the transaction indicate any shift in trading cadence or capacity constraints?
Trade size has remained consistent in recent periods (March 5, 2025 to October 15, 2025), with the median proportion of holdings sold per trade holding near 0.95%. Given the CEO’s direct holdings have declined from 968,360 shares as of June 3, 2024, to 727,388 shares after the October 15, 2025 transaction, the smaller absolute trade sizes reflect reduced available capacity rather than a discretionary slowdown.

Company overview

* 1-year price change calculated using October 15, 2025 as the reference date.

Company snapshot

Grail in the medical diagnostics sector, leveraging advanced biotechnology to address the need for early cancer detection. The company’s strategy centers on commercializing innovative screening solutions for early cancer detection. It also focuses on broad-based cancer screening for at-risk populations.

The company's treatments target asymptomatic individuals over 50 years of age, as well as clinicians focused on early cancer detection and patient management.

Foolish take

Besides CEO Ragusa share sale, other company insiders reported selling shares on Oct. 15 and Oct. 16. These include the company president, Joshua Ofman (sold 14,979 shares, 381,818 shares remaining), and directors Steven Mizell (267 shares, 36,469 remaining), Gregory Summe (425 shares sold, 38,794 remaining), and William Chase (275 shares sold, 36,590 remaining).

A series of share sales can serve as a warning sign. Still, the sales, which generally represent small portions of their overall ownership, come when the stock has performed extremely well. The 439% appreciation over the last year through Oct. 15 trounced the S&P 500 index's 16.2% return. That could indicate profit taking rather than a belief about the company's direction.

Nonetheless, it's noteworthy that Grail doesn't produce much revenue, $35.5 million in the second quarter, up 11.2% year-over-year. The company also doesn't report a profit under generally accepted accounting principles. It lost $114 million in the quarter, although that's narrower than a year ago when it lost $1.6 billion.

Glossary

Open-market sale: The sale of securities on a public exchange, available to any investor, not through a private transaction.
SEC Form 4: A regulatory filing reporting insider trades by company officers, directors, or significant shareholders.
Weighted average purchase price: The average price paid per share, accounting for the number of shares at each price in a transaction.
Direct ownership: Shares held personally by an insider, not through trusts or indirect arrangements.
Outstanding shares: Total shares of a company currently held by all shareholders, including insiders and the public.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Insider trading: Buying or selling a company’s securities by individuals with access to nonpublic, material information about the company.
Transaction value: The total dollar amount received or paid in a securities trade, calculated as price per share times number of shares.
Median sell transaction size: The middle value of all insider sale sizes over a period, used to show typical trade size.
Capacity constraints: Limits on the amount of shares an insider can sell due to reduced holdings or regulatory considerations.
Multi-cancer screening test: A diagnostic tool designed to detect multiple types of cancer from a single test.
TTM: The 12-month period ending with the most recent quarterly report.

Lawrence Rothman has no position in any of the stocks mentioned. The Motley Fool recommends Grail. The Motley Fool has a disclosure policy.