Insiders Who Sold US$628k Of Tyra Biosciences Made The Right Call

While Tyra Biosciences, Inc. (NASDAQ:TYRA) shareholders have enjoyed a good week with stock up 34%, they need remain vigilant. In spite of the relatively cheap prices, insiders made the decision to sell US$628k worth of stock in the last 12 months. This could be a warning indicator of vulnerabilities in the future.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Tyra Biosciences

The Independent Director, Gilla Kaplan, made the biggest insider sale in the last 12 months. That single transaction was for US$535k worth of shares at a price of US$10.38 each. That means that even when the share price was below the current price of US$21.12, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 58% of Gilla Kaplan's holding. The only individual insider seller over the last year was Gilla Kaplan.

Gilla Kaplan ditched 61.39k shares over the year. The average price per share was US$10.23. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Tyra Biosciences

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 Of Tyra Biosciences

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 3.5% of Tyra Biosciences shares, worth about US$40m. 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 Tyra Biosciences Insider Transactions Indicate?

The fact that there have been no Tyra Biosciences insider transactions recently certainly doesn't bother us. Our analysis of Tyra Biosciences insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. 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 3 warning signs for Tyra Biosciences (2 are significant!) and we strongly recommend you look at them before investing.

Of course Tyra Biosciences 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.