Insiders Enjoy US$190k Return After Buying Ventyx Biosciences Stock

Insiders who bought Ventyx Biosciences, Inc. (NASDAQ:VTYX) stock lover the last 12 months are probably not as affected by last week’s 12% loss. After taking the recent loss into consideration, the US$959.9k worth of stock they bought is now worth US$1.15m, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Ventyx Biosciences

The Last 12 Months Of Insider Transactions At Ventyx Biosciences

Over the last year, we can see that the biggest insider purchase was by Founder Raju Mohan for US$960k worth of shares, at about US$2.01 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.30. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

Ventyx Biosciences is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Ventyx Biosciences Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Ventyx Biosciences insiders own about US$7.1m worth of shares (which is 4.2% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Ventyx Biosciences Tell Us?

It's certainly positive 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Ventyx Biosciences stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Ventyx Biosciences has 4 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

But note: Ventyx Biosciences may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.