Don't Ignore The Insider Selling In Kymera Therapeutics

We'd be surprised if Kymera Therapeutics, Inc. (NASDAQ:KYMR) shareholders haven't noticed that the Chief Financial Officer, Bruce Jacobs, recently sold US$214k worth of stock at US$30.45 per share. On the bright side, that sale was only 4.7% of their holding, so we doubt it's very meaningful, on its own.

See our latest analysis for Kymera Therapeutics

The Last 12 Months Of Insider Transactions At Kymera Therapeutics

Notably, that recent sale by Bruce Jacobs is the biggest insider sale of Kymera Therapeutics shares that we've seen in the last year. That means that even when the share price was below the current price of US$31.70, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 4.7% of Bruce Jacobs's holding.

In the last year Kymera Therapeutics insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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

Does Kymera Therapeutics Boast High 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. Kymera Therapeutics insiders own about US$26m worth of shares. That equates to 1.3% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Kymera Therapeutics Tell Us?

Insiders haven't bought Kymera Therapeutics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Kymera Therapeutics you should be aware of.

Of course Kymera 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 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.