Don't Ignore The Insider Selling In Skye Bioscience

We'd be surprised if Skye Bioscience, Inc. (NASDAQ:SKYE) shareholders haven't noticed that the Independent Chairman of the Board, Paul Grayson, recently sold US$432k worth of stock at US$4.99 per share. That sale was 25% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Skye Bioscience

Skye Bioscience Insider Transactions Over The Last Year

Notably, that recent sale by Paul Grayson is the biggest insider sale of Skye Bioscience shares that we've seen in the last year. 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$4.17). So it may not tell us anything about how insiders feel about the current share price.

In the last year Skye Bioscience insiders didn't buy any company stock. 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Does Skye Bioscience Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data isn't picking up on much insider ownership at Skye Bioscience, though insiders do hold about US$469k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. This level of insider ownership is notably low, and not very encouraging.

What Might The Insider Transactions At Skye Bioscience Tell Us?

Insiders sold Skye Bioscience shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. We'd certainly practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 6 warning signs for Skye Bioscience (4 are significant!) and we strongly recommend you look at these before investing.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.