Lyell Immunopharma's Stock Sinks To US$1.39, But Insiders Sold Even Lower

Lyell Immunopharma, Inc.'s (NASDAQ:LYEL) value has fallen 11% in the last week, but insiders who sold US$132k worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$2.28 is still below the current share price.

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.

See our latest analysis for Lyell Immunopharma

Lyell Immunopharma Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder & Executive Chairman, Richard Klausner, for US$132k worth of shares, at about US$2.28 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$1.39). So it may not shed much light on insider confidence at current levels. Richard Klausner was the only individual insider to sell over the last year.

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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Lyell Immunopharma Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Lyell Immunopharma. In total, Founder & Executive Chairman Richard Klausner dumped US$132k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.6% of Lyell Immunopharma shares, worth about US$13m. 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 Lyell Immunopharma Tell Us?

An insider hasn't bought Lyell Immunopharma stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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 4 warning signs for Lyell Immunopharma you should be aware of, and 1 of these shouldn't be ignored.

Of course Lyell Immunopharma 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.