Insiders Of PYC Therapeutics Reap Rewards After Their Investment Jumps Another AU$3.8m

PYC Therapeutics Limited (ASX:PYC) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 24%, resulting in a AU$163m rise in the company's market capitalisation, translating to a gain of 71% on their initial investment. In other words, the original AU$5.25m purchase is now worth AU$9.00m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for PYC Therapeutics

The Last 12 Months Of Insider Transactions At PYC Therapeutics

The Non-Executive Chair of the Board Alan Tribe made the biggest insider purchase in the last 12 months. That single transaction was for AU$5.2m worth of shares at a price of AU$0.10 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.18. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of PYC Therapeutics

Many investors like to check how much of a company is owned by 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$383m worth of shares (which is 46% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About PYC Therapeutics Insiders?

The fact that there have been no PYC Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like PYC Therapeutics insiders think the business has merit. 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. At Simply Wall St, we found 3 warning signs for PYC Therapeutics that deserve your attention before buying any shares.

Of course PYC Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.