GlycoMimetics Insider Confidence Rewarded, Stock Hits US$11m Market Cap

Last week, GlycoMimetics, Inc. (NASDAQ:GLYC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 197% last week, resulting in a US$21m increase in the company's market worth, implying a 90% gain on their initial purchase. Put another way, the original US$83.2k acquisition is now worth US$158.0k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for GlycoMimetics

The Last 12 Months Of Insider Transactions At GlycoMimetics

Over the last year, we can see that the biggest insider purchase was by Senior VP & Chief Medical Officer Edwin Rock for US$79k worth of shares, at about US$0.27 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$0.49. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.3% of GlycoMimetics shares, worth about US$905k, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About GlycoMimetics Insiders?

It doesn't really mean much that no insider has traded GlycoMimetics shares in the last quarter. 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 GlycoMimetics 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. Be aware that GlycoMimetics is showing 5 warning signs in our investment analysis, and 3 of those shouldn't be ignored...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.