Insider Buying: The Cyclerion Therapeutics, Inc. (NASDAQ:CYCN) CEO & Director Just Bought 67% More Shares

By
Simply Wall St
Published
June 07, 2021
NasdaqGS:CYCN
Source: Shutterstock

Those following along with Cyclerion Therapeutics, Inc. (NASDAQ:CYCN) will no doubt be intrigued by the recent purchase of shares by Peter Hecht, CEO & Director of the company, who spent a stonking US$2.7m on stock at an average price of US$3.28. That purchase boosted their holding by 67%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

View our latest analysis for Cyclerion Therapeutics

Cyclerion Therapeutics Insider Transactions Over The Last Year

In fact, the recent purchase by Peter Hecht was the biggest purchase of Cyclerion Therapeutics shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$3.15 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

Happily, we note that in the last year insiders paid US$5.4m for 1.95m shares. But they sold 20.11k shares for US$61k. Overall, Cyclerion Therapeutics insiders were net buyers during the last year. Their average price was about US$2.79. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:CYCN Insider Trading Volume June 8th 2021

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. From our data, it seems that Cyclerion Therapeutics insiders own 5.6% of the company, worth about US$6.1m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Cyclerion Therapeutics Tell Us?

The recent insider purchase is heartening. 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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Cyclerion Therapeutics insiders are expecting a bright future. 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. For example - Cyclerion Therapeutics has 3 warning signs we think you should be aware of.

But note: Cyclerion Therapeutics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.

When trading Cyclerion Therapeutics or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted


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.
*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020


Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.


Simply Wall St character - Warren

Simply Wall St

Simply Wall St is focused on providing unbiased, high-quality research coverage on every listed company in the world. Our research team consists of data scientists and multiple equity analysts with over two decades worth of financial markets experience between them.