Pyxis Oncology Insider Stock Sales Prove Timely As Market Valuation Descends To US$263m

Over the past year, insiders sold US$81k worth of Pyxis Oncology, Inc. (NASDAQ:PYXS) stock at an average price of US$2.23 per share allowing them to get the most out of their money. The company's market worth decreased by US$43m over the past week after the stock price dropped 14%, although insiders were able to minimize their losses

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 Pyxis Oncology

The Last 12 Months Of Insider Transactions At Pyxis Oncology

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Lara Sullivan, sold US$63k worth of shares at a price of US$2.27 per share. That means that an insider was selling shares at slightly below the current price (US$4.53). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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 2.3% of Lara Sullivan's holding. Lara Sullivan was the only individual insider to sell over the last year.

In the last twelve months insiders purchased 41.43k shares for US$73k. But insiders sold 36.56k shares worth US$81k. Lara Sullivan sold a total of 36.56k shares over the year at an average price of US$2.23. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Pyxis Oncology Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Insiders own 6.2% of Pyxis Oncology shares, worth about US$16m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Pyxis Oncology Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Pyxis Oncology shares in the last quarter. Still, the insider transactions at Pyxis Oncology in the last 12 months are not very heartening. But it's good to see that insiders own shares in the company. While we like knowing 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. Case in point: We've spotted 5 warning signs for Pyxis Oncology you should be aware of, and 4 of these can'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.