Stock Analysis

Have Insiders Sold Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) Shares Recently?

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NasdaqGS:YMAB
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Some Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) shareholders may be a little concerned to see that insider Claus Juan Moller San Pedro recently sold a substantial US$2.6m worth of stock at a price of US$51.21 per share. However, that sale only accounted for 7.4% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Y-mAbs Therapeutics

In fact, the recent sale by insider Claus Juan Moller San Pedro was not their only sale of Y-mAbs Therapeutics shares this year. They previously made an even bigger sale of -US$7.3m worth of shares at a price of US$37.75 per share. That means that even when the share price was below the current price of US$51.29, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower 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. It is worth noting that this sale was only 23% of Claus Juan Moller San Pedro's holding.

Over the last year, we can see that insiders have bought 3.60k shares worth US$112k. On the other hand they divested 610.00k shares, for US$24m. All up, insiders sold more shares in Y-mAbs Therapeutics than they bought, over the last year. The sellers received a price of around US$38.93, on average. It's not particularly great to see insiders were selling shares at below recent prices. But we wouldn't put too much weight on the insider selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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NasdaqGS:YMAB Insider Trading Volume December 6th 2020

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Insider Ownership of Y-mAbs Therapeutics

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Y-mAbs Therapeutics insiders own 18% of the company, worth about US$374m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Y-mAbs Therapeutics Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Y-mAbs Therapeutics stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Y-mAbs Therapeutics has 3 warning signs (and 1 which is potentially serious) we think you should know about.

Of course Y-mAbs Therapeutics 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, but not derivative transactions.

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