Even if it's not a huge purchase, we think it was good to see that Dennis Kim, the Chief Medical Officer of CymaBay Therapeutics, Inc. (NASDAQ:CBAY) recently shelled out US$61k to buy stock, at US$3.04 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
The Last 12 Months Of Insider Transactions At CymaBay Therapeutics
Notably, that recent purchase by Dennis Kim is the biggest insider purchase of CymaBay Therapeutics shares that we've seen in the last year. That means that an insider was happy to buy shares at above the current price of US$2.89. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Dennis Kim was the only individual insider to buy during the last year.
You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
CymaBay Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our information indicates that CymaBay Therapeutics insiders own about US$793k worth of shares. We might be missing something but that seems like very low insider ownership.
So What Do The CymaBay Therapeutics Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that CymaBay Therapeutics insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CymaBay Therapeutics. To that end, you should learn about the 4 warning signs we've spotted with CymaBay Therapeutics (including 1 which can't be ignored).
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, but not derivative transactions.
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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.