Sera Prognostics CIO’s Rule‑10b‑5‑1 Sales Continue – 20% of Insider Traded Shares Sold Amid Declining Stock and Negative Earnings Outlook

Insider Selling Continues at Sera Prognostics

Sera Prognostics Inc. (SERA) saw its chief information officer, Harrison Robert Gardner, liquidate 2,000 shares on January 27, 2026, as part of a Rule 10b‑5‑1 trading plan adopted last year. The shares were sold at a weighted average of $2.97, slightly below the $3.00 market price at the time. The sale is the latest in a string of December transactions that saw Gardner sell a total of 7,000 shares, with the most recent price hovering around $3.07.

What Does This Mean for Investors? The steady stream of sales, all executed under a pre‑arranged trading plan, signals that Gardner is managing personal cash flow rather than reacting to insider information. However, the volume of shares sold—over 20% of the total shares traded by insiders in the past month—feeds into the narrative that Sera’s leadership is not accumulating equity, potentially undermining confidence during a period of declining stock performance. The company’s share price has fallen 13.8% this week and 8.3% this month, and the year‑to‑date decline exceeds 50%. In such a volatile environment, even plan‑based sales can amplify negative sentiment, especially when combined with a negative P/E and a steep 52‑week low of $1.37.

Gardner’s Trading Profile Gardner’s historical transactions reveal a consistent pattern: large block sales of 2,000 shares, interspersed with smaller 600‑share sales, all executed at prices between $1.48 and $3.31. His most recent sale on December 4, 2025, matched the January 27 sale in volume but at a higher price of $3.07. The timing of these sales—often in the first two weeks of each month—suggests a disciplined approach to liquidity needs rather than opportunistic timing. The fact that all sales fall within a Rule 10b‑5‑1 plan provides regulatory reassurance but does not fully assuage market concerns when the company’s fundamentals remain weak.

Implications for Sera’s Future Sera Prognostics continues to grapple with a negative earnings outlook and a price‑to‑earnings ratio of –4.41, indicating that the stock trades at a discount to earnings. The company’s valuation sits above book value but below industry peers, and its recent 52‑week high of $6.918 is still far from current levels. Insider selling, even under a trading plan, may be interpreted as a lack of conviction by senior executives. For investors, this could translate into further selling pressure, especially if the company fails to deliver on its diagnostic product pipeline or secure new commercial contracts. Conversely, the disciplined nature of the sales may be viewed as a sign that executives are managing personal finances responsibly, potentially mitigating panic among long‑term shareholders.

Bottom Line Harrison Gardner’s latest sale is part of an ongoing pattern of plan‑based liquidations that, while compliant, may reinforce perceptions of weak internal confidence amid a challenging market environment. Investors should weigh the company’s declining performance, negative earnings, and high insider sell activity when deciding whether to hold or sell SERA shares.