EyePoint Pharmaceuticals Insiders Sold US$935k Of Shares Suggesting Hesitancy

Over the past year, many EyePoint Pharmaceuticals, Inc. (NASDAQ:EYPT) insiders sold a significant stake in the company which may have piqued investors' interest. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for EyePoint Pharmaceuticals

EyePoint Pharmaceuticals Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Vice Chair, Nancy Lurker, sold US$874k worth of shares at a price of US$24.98 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$8.16. So it is hard to draw any strong conclusion from it.

Happily, we note that in the last year insiders paid US$185k for 23.24k shares. But insiders sold 40.55k shares worth US$935k. Over the last year we saw more insider selling of EyePoint Pharmaceuticals shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of EyePoint Pharmaceuticals

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, EyePoint Pharmaceuticals insiders have about 0.7% of the stock, worth approximately US$4.0m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About EyePoint Pharmaceuticals Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. We don't take much encouragement from the transactions by EyePoint Pharmaceuticals insiders. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing EyePoint Pharmaceuticals. For instance, we've identified 4 warning signs for EyePoint Pharmaceuticals (2 are concerning) you should be aware of.

Of course EyePoint Pharmaceuticals 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 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.