Founder Thomas Gad Sold A Bunch Of Shares In Y-mAbs Therapeutics

We wouldn't blame Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) shareholders if they were a little worried about the fact that Thomas Gad, the Founder recently netted about US$1.3m selling shares at an average price of US$13.31. That's a big disposal, and it decreased their holding size by 29%, which is notable but not too bad.

See our latest analysis for Y-mAbs Therapeutics

Y-mAbs Therapeutics Insider Transactions Over The Last Year

Notably, that recent sale by Thomas Gad is the biggest insider sale of Y-mAbs Therapeutics shares that we've seen in the last year. That means that an insider was selling shares at slightly below the current price (US$14.00). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 29% of Thomas Gad's stake.

Y-mAbs Therapeutics insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Y-mAbs Therapeutics insiders own about US$17m worth of shares. That equates to 2.8% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Y-mAbs Therapeutics Tell Us?

Insiders sold Y-mAbs Therapeutics shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! 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 4 warning signs for Y-mAbs Therapeutics (1 is significant!) and we strongly recommend you look at these before investing.

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.