Insiders Rewarded With US$55k Addition To Investment As Cyclerion Therapeutics Stock Hits US$7.6m

Cyclerion Therapeutics, Inc. (NASDAQ:CYCN) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 29%, resulting in a US$2.2m rise in the company's market capitalisation, translating to a gain of 11% on their initial investment. In other words, the original US$525.0k purchase is now worth US$580.4k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Cyclerion Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Peter Hecht bought US$500k worth of shares at a price of US$2.75 per share. That means that an insider was happy to buy shares at around the current price of US$3.04. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Cyclerion Therapeutics insiders decided to buy shares at close to current prices.

While Cyclerion Therapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Cyclerion Therapeutics

Cyclerion Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Cyclerion Therapeutics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 23% of Cyclerion Therapeutics shares, worth about US$1.8m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Cyclerion Therapeutics Insiders?

It doesn't really mean much that no insider has traded Cyclerion Therapeutics shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Cyclerion Therapeutics insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 5 warning signs for Cyclerion Therapeutics (2 are concerning!) and we strongly recommend you look at them before investing.

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 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.