Insider Spends US$3.0m Buying More Shares In Taysha Gene Therapies

Those following along with Taysha Gene Therapies, Inc. (NASDAQ:TSHA) will no doubt be intrigued by the recent purchase of shares by Paul Manning, Board Observer of the company, who spent a stonking US$3.0m on stock at an average price of US$2.25. While that only increased their holding size by 5.7%, it is still a big swing by our standards.

View our latest analysis for Taysha Gene Therapies

Taysha Gene Therapies Insider Transactions Over The Last Year

Notably, that recent purchase by Board Observer Paul Manning was not the only time they bought Taysha Gene Therapies shares this year. Earlier in the year, they paid US$0.90 per share in a US$15m purchase. We do like to see buying, but this purchase was made at well below the current price of US$2.15. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Happily, we note that in the last year insiders paid US$19m for 19.23m shares. But insiders sold 85.87k shares worth US$61k. In total, Taysha Gene Therapies insiders bought more than they sold over the last year. Their average price was about US$1.00. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Taysha Gene Therapies

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Taysha Gene Therapies insiders own 13% of the company, worth about US$55m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Taysha Gene Therapies Insider Transactions Indicate?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Taysha Gene Therapies insiders are well aligned, and that they may think the share price is too low. 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. When we did our research, we found 3 warning signs for Taysha Gene Therapies (2 can't be ignored!) that we believe deserve your full attention.

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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