Cyclerion Therapeutics' Market Cap Drops To US$5.0m Leaving Insiders With Losses
Insiders who bought US$1.95m worth of Cyclerion Therapeutics, Inc.'s (NASDAQ:CYCN) stock at an average buy price of US$8.68 over the last year may be disappointed by the recent 16% decrease in the stock. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$429.8k, which is not great.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Cyclerion Therapeutics
The Last 12 Months Of Insider Transactions At Cyclerion Therapeutics
In the last twelve months, the biggest single purchase by an insider was when CEO & Director Peter Hecht bought US$2.0m worth of shares at a price of US$8.68 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.91). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Peter Hecht was the only individual insider to buy during 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of Cyclerion Therapeutics
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Cyclerion Therapeutics insiders own 14% of the company, worth about US$675k. We do generally prefer see higher levels of insider ownership.
So What Do The Cyclerion Therapeutics Insider Transactions Indicate?
The fact that there have been no Cyclerion Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Cyclerion Therapeutics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cyclerion Therapeutics. To help with this, we've discovered 5 warning signs (2 make us uncomfortable!) that you ought to be aware of before buying any shares in Cyclerion Therapeutics.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
