Insider Spends US$79k Buying More Shares In GlycoMimetics

Whilst it may not be a huge deal, we thought it was good to see that the GlycoMimetics, Inc. (NASDAQ:GLYC) Senior VP & Chief Medical Officer, Edwin Rock, recently bought US$79k worth of stock, for US$0.26 per share. Even though that isn't a massive buy, it did increase their holding by 81%, which is arguably a good sign.

Check out our latest analysis for GlycoMimetics

GlycoMimetics Insider Transactions Over The Last Year

Notably, that recent purchase by Senior VP & Chief Medical Officer Edwin Rock was not the only time they bought GlycoMimetics shares this year. They previously made an even bigger purchase of US$90k worth of shares at a price of US$1.38 per share. That means that even when the share price was higher than US$0.29 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While GlycoMimetics insiders bought shares during the last year, they didn't sell. Their average price was about US$0.45. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

GlycoMimetics 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

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 GlycoMimetics insiders own 3.1% of the company, worth about US$673k. I generally like to see higher levels of ownership.

What Might The Insider Transactions At GlycoMimetics Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that GlycoMimetics insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 6 warning signs for GlycoMimetics (of which 4 are concerning!) you should know about.

But note: GlycoMimetics 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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