Y-mAbs Therapeutics Insiders Who Sold Avert US$91m Market Cap Dip

Insiders at Y-mAbs Therapeutics, Inc. (NASDAQ:YMAB) sold US$1.9m worth of stock at an average price of US$6.24 a share over the past year, making the most of their investment. The company's market worth decreased by US$91m over the past week after the stock price dropped 13%, although insiders were able to minimize their losses

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Y-mAbs Therapeutics

Y-mAbs Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Founder, Thomas Gad, for US$1.0m worth of shares, at about US$6.83 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$14.42. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 29% of Thomas Gad's holding.

Insiders in Y-mAbs Therapeutics didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders At Y-mAbs Therapeutics Have Sold Stock Recently

The last three months saw significant insider selling at Y-mAbs Therapeutics. In total, insiders sold US$120k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

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$19m worth of shares. That equates to 3.1% 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.

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

Insiders haven't bought Y-mAbs Therapeutics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! 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 Y-mAbs Therapeutics (including 1 which is potentially serious).

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 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.