Trade Alert: The Chief Medical Officer Of Zymeworks Inc. (NYSE:ZYME), Neil Josephson, Has Just Spent US$71k Buying 236% More Shares

By
Simply Wall St
Published
January 14, 2022
NYSE:ZYME
Source: Shutterstock

Whilst it may not be a huge deal, we thought it was good to see that the Zymeworks Inc. (NYSE:ZYME) Chief Medical Officer, Neil Josephson, recently bought US$71k worth of stock, for US$14.28 per share. Even though that isn't a massive buy, it did increase their holding by 236%, which is arguably a good sign.

Check out our latest analysis for Zymeworks

Zymeworks Insider Transactions Over The Last Year

In fact, the recent purchase by Neil Josephson was the biggest purchase of Zymeworks shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$14.56 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Zymeworks share holders is that an insider was buying at near the current price. Neil Josephson was the only individual insider to buy shares in the last twelve months.

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!

insider-trading-volume
NYSE:ZYME Insider Trading Volume January 14th 2022

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Zymeworks

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Zymeworks insiders own 0.8% of the company, worth about US$5.6m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Zymeworks Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives 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 Zymeworks insiders are reasonably well aligned, and optimistic for the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Zymeworks.

But note: Zymeworks 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, but not derivative transactions.

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