Nykode Therapeutics AS' (OB:NYKD)) market cap declines to kr8.2b but insiders who sold US$133m stock were able to hedge their losses

By
Simply Wall St
Published
May 11, 2022
OB:NYKD
Source: Shutterstock

Over the past year, insiders sold US$133m worth of Nykode Therapeutics AS (OB:NYKD) stock at an average price of US$69.57 per share allowing them to get the most out of their money. The company's market valuation decreased by kr2.0b after the stock price dropped 20% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Nykode Therapeutics

The Last 12 Months Of Insider Transactions At Nykode Therapeutics

The Director, Einar Greve, made the biggest insider sale in the last 12 months. That single transaction was for kr112m worth of shares at a price of kr68.70 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of kr28.40. So it is hard to draw any strong conclusion from it.

In the last twelve months insiders purchased 510.60k shares for kr39m. On the other hand they divested 1.91m shares, for kr133m. Over the last year we saw more insider selling of Nykode Therapeutics shares, than buying. 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!

insider-trading-volume
OB:NYKD Insider Trading Volume May 11th 2022

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

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Nykode Therapeutics insiders own 20% of the company, worth about kr1.7b. 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 Nykode Therapeutics Insiders?

The fact that there have been no Nykode Therapeutics insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Nykode Therapeutics, we can't say the same about the selling of shares. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. In terms of investment risks, we've identified 1 warning sign with Nykode Therapeutics and understanding this should be part of your investment process.

Of course Nykode 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, but not derivative transactions.

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