Insiders Could Have Profited By Holding onto Dyne Therapeutics Shares Despite 16% Drop \

Despite the fact that Dyne Therapeutics, Inc.'s (NASDAQ:DYN) value has dropped 16% in the last week insiders who sold US$618k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$13.06 is still below the current share price.

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.

See our latest analysis for Dyne Therapeutics

The Last 12 Months Of Insider Transactions At Dyne Therapeutics

In fact, the recent sale by Joshua Brumm was the biggest sale of Dyne Therapeutics shares made by an insider individual in the last twelve months, according to our records. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$10.95). So it may not shed much light on insider confidence at current levels.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Dyne Therapeutics Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Dyne Therapeutics. Specifically, CEO, President & Director Joshua Brumm ditched US$618k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Dyne Therapeutics

For a common shareholder, it is worth checking how many shares are held by company 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. From looking at our data, insiders own US$3.0m worth of Dyne Therapeutics stock, about 0.5% of the company. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Dyne Therapeutics Tell Us?

An insider sold Dyne Therapeutics shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Dyne Therapeutics. At Simply Wall St, we've found that Dyne Therapeutics has 5 warning signs (2 are concerning!) that deserve your attention before going any further with your analysis.

Of course Dyne Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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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.