PYC Therapeutics CEO & Executive Director Rohan Hockings Sells 100% Of Holding

Some PYC Therapeutics Limited (ASX:PYC) shareholders may be a little concerned to see that the CEO & Executive Director, Rohan Hockings, recently sold a substantial AU$1.8m worth of stock at a price of AU$0.10 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.

View our latest analysis for PYC Therapeutics

PYC Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Non-Executive Chair of the Board Alan Tribe for AU$14m worth of shares, at about AU$0.055 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.091. 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.

Happily, we note that in the last year insiders paid AU$15m for 274.40m shares. But insiders sold 68.32m shares worth AU$3.0m. In total, PYC Therapeutics insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

PYC Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of PYC Therapeutics

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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$199m worth of shares (which is 57% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About PYC Therapeutics Insiders?

An insider hasn't bought PYC Therapeutics stock in the last three months, but there was some selling. In contrast, they appear keener if you look at the last twelve months. And insider ownership remains quite considerable. So the recent selling doesn't worry us. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for PYC Therapeutics (of which 2 are a bit concerning!) you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.