Insider Buyers At VYNE Therapeutics Recover Some Losses, But Still Down US$35k

Insiders who bought US$125.5k worth of VYNE Therapeutics Inc. (NASDAQ:VYNE) stock in the last year have seen some of their losses recouped as the stock gained 17% last week. However, the purchase is proving to be an expensive wager as insiders are yet to get ahead of their losses which currently stand at US$35k since the time of purchase.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for VYNE Therapeutics

VYNE Therapeutics Insider Transactions Over The Last Year

The Lead Independent Director Patrick LePore made the biggest insider purchase in the last 12 months. That single transaction was for US$51k worth of shares at a price of US$3.91 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$2.10). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

VYNE Therapeutics insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$2.92. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

VYNE Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

VYNE Therapeutics Insiders Bought Stock Recently

Over the last quarter, VYNE Therapeutics insiders have spent a meaningful amount on shares. We can see that Lead Independent Director Patrick LePore paid US$51k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.

Insider Ownership

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 VYNE Therapeutics insiders own about US$2.0m worth of shares (which is 6.9% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About VYNE Therapeutics Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that VYNE Therapeutics insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing VYNE Therapeutics. Every company has risks, and we've spotted 6 warning signs for VYNE Therapeutics (of which 3 are concerning!) you should know about.

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.