This Insider Has Just Sold Shares In Cytokinetics

Some Cytokinetics, Incorporated (NASDAQ:CYTK) shareholders may be a little concerned to see that the CEO, President & Director, Robert Blum, recently sold a substantial US$1.2m worth of stock at a price of US$52.60 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.1%.

See our latest analysis for Cytokinetics

The Last 12 Months Of Insider Transactions At Cytokinetics

In fact, the recent sale by Robert Blum was the biggest sale of Cytokinetics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$51.82. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Cytokinetics insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Cytokinetics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Cytokinetics insiders own 0.5% of the company, worth about US$31m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Cytokinetics Insiders?

Insiders haven't bought Cytokinetics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of 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. When we did our research, we found 5 warning signs for Cytokinetics (1 is a bit unpleasant!) that we believe deserve your full attention.

But note: Cytokinetics 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 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.

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