Don't Ignore The Insider Selling In Syndax Pharmaceuticals

Anyone interested in Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX) should probably be aware that the CEO & Director, Michael Metzger, recently divested US$206k worth of shares in the company, at an average price of US$15.50 each. That sale was 25% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Syndax Pharmaceuticals

The Last 12 Months Of Insider Transactions At Syndax Pharmaceuticals

Notably, that recent sale by Michael Metzger is the biggest insider sale of Syndax Pharmaceuticals shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$14.92. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Syndax Pharmaceuticals insiders sold more than they bought over 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!

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).

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. We usually like to see fairly high levels of insider ownership. Our data indicates that Syndax Pharmaceuticals insiders own about US$5.1m worth of shares (which is 0.4% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Syndax Pharmaceuticals Insiders?

Insiders haven't bought Syndax Pharmaceuticals stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. Case in point: We've spotted 2 warning signs for Syndax Pharmaceuticals you should be aware of.

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.