Ventyx Biosciences Repeat Insider Selling Not A Positive Indicator

A number of Ventyx Biosciences, Inc. (NASDAQ:VTYX) insiders sold their shares in the last year, which may have raised concerns among investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Ventyx Biosciences

The Last 12 Months Of Insider Transactions At Ventyx Biosciences

In the last twelve months, the biggest single sale by an insider was when the Founder, Raju Mohan, sold US$125k worth of shares at a price of US$2.12 per share. That means that even when the share price was below the current price of US$2.37, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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 only 3.6% of Raju Mohan's holding.

In the last year Ventyx Biosciences insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Ventyx Biosciences

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. Our data indicates that Ventyx Biosciences insiders own about US$5.3m worth of shares (which is 3.3% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Ventyx Biosciences Insider Transactions Indicate?

The fact that there have been no Ventyx Biosciences insider transactions recently certainly doesn't bother us. The insider transactions at Ventyx Biosciences are not inspiring us to buy. And usually insiders own more stock in the company, according to our data. 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. To that end, you should learn about the 4 warning signs we've spotted with Ventyx Biosciences (including 1 which is concerning).

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.