Dyne Therapeutics' Recent Gains Improve Losses On Insider Purchases Worth US$1.06m

Some of the losses seen by insiders who purchased US$1.06m worth of Dyne Therapeutics, Inc. (NASDAQ:DYN) shares over the past year were recovered after the stock increased by 25% over the past week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$759k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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Dyne Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO, President & Director John Cox for US$1.1m worth of shares, at about US$33.09 per share. That means that even when the share price was higher than US$9.33 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. John Cox was the only individual insider to buy during the last year.

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!

View our latest analysis for Dyne Therapeutics

Dyne Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Dyne Therapeutics

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests Dyne Therapeutics insiders own 0.3% of the company, worth about US$2.7m. We consider this fairly low insider ownership.

What Might The Insider Transactions At Dyne Therapeutics Tell Us?

The fact that there have been no Dyne Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Dyne Therapeutics insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Dyne Therapeutics has 4 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

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.