The Independent Non-Executive Director of PYC Therapeutics Limited (ASX:PYC), Bernard Hockings, Just Sold 25% Of Their Holding

We wouldn't blame PYC Therapeutics Limited (ASX:PYC) shareholders if they were a little worried about the fact that Bernard Hockings, the Independent Non-Executive Director recently netted about AU$7.0m selling shares at an average price of AU$0.08. That sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.

Check out our latest analysis for PYC Therapeutics

PYC Therapeutics Insider Transactions Over The Last Year

Notably, that recent sale by Bernard Hockings is the biggest insider sale of PYC Therapeutics shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (AU$0.099). 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. This single sale was just 25% of Bernard Hockings's stake.

The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership of PYC Therapeutics

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. PYC Therapeutics insiders own about AU$158m worth of shares (which is 54% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About PYC Therapeutics Insiders?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. Every company has risks, and we've spotted 4 warning signs for PYC Therapeutics (of which 2 are potentially serious!) you should know about.

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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, but not derivative transactions.

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