Have TYK Medicines Insiders Been Selling Stock?

We'd be surprised if TYK Medicines, Inc (HKG:2410) shareholders haven't noticed that the Non-Executive Director, Eric Gu, recently sold HK$2.7m worth of stock at HK$19.05 per share. However, the silver lining is that the sale only reduced their total holding by 1.7%, so we're hesitant to read anything much into it, on its own.

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TYK Medicines Insider Transactions Over The Last Year

In fact, the recent sale by Eric Gu was the biggest sale of TYK Medicines shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$15.18). So it may not tell us anything about how insiders feel about the current share price.

Eric Gu ditched 210.00k shares over the year. The average price per share was CN¥17.69. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for TYK Medicines

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Does TYK Medicines Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.1% of TYK Medicines shares, worth about HK$122m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At TYK Medicines Tell Us?

An insider sold TYK Medicines shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing TYK Medicines. Our analysis shows 4 warning signs for TYK Medicines (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

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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 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.