Despite Recent Gains, Lyra Therapeutics Insiders Are Still Down US$66k

Insiders who purchased US$74.1k worth of Lyra Therapeutics, Inc. (NASDAQ:LYRA) shares over the past year recouped some of their losses after price gained 17% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$66k since the time of purchase.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Lyra Therapeutics

The Last 12 Months Of Insider Transactions At Lyra Therapeutics

The Executive Chairman Harlan Waksal made the biggest insider purchase in the last 12 months. That single transaction was for US$74k worth of shares at a price of US$2.96 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.33). 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. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Harlan Waksal was the only individual insider to buy during the last year.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Lyra Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Lyra Therapeutics, though insiders do hold about US$108k worth of shares. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Lyra Therapeutics Tell Us?

The fact that there have been no Lyra Therapeutics insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Lyra Therapeutics insiders are doubting the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To help with this, we've discovered 5 warning signs (1 shouldn't be ignored!) that you ought to be aware of before buying any shares in Lyra Therapeutics.

Of course Lyra 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.