Insider Buying: The Cortexyme, Inc. (NASDAQ:CRTX) Independent Director Just Bought 2.4% More Shares

Cortexyme, Inc. (NASDAQ:CRTX) shareholders (or potential shareholders) will be happy to see that the Independent Director, David Lamond, recently bought a whopping US$1.8m worth of stock, at a price of US$35.34. While that only increased their holding size by 2.4%, it is still a big swing by our standards.

See our latest analysis for Cortexyme

The Last 12 Months Of Insider Transactions At Cortexyme

Notably, that recent purchase by Independent Director David Lamond was not the only time they bought Cortexyme shares this year. Earlier in the year, they paid US$56.42 per share in a US$2.5m purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$40.06). 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. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Cortexyme insiders may have bought shares in the last year, but they didn't sell any. They paid about US$44.97 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Cortexyme is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Cortexyme Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Cortexyme insiders own 27% of the company, currently worth about US$325m based on the recent share price. 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 Cortexyme Insiders?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cortexyme. That's what I like to see! 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. Every company has risks, and we've spotted 4 warning signs for Cortexyme (of which 1 can't be ignored!) you should know about.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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. 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.
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