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CymaBay Therapeutics, Inc. (NASDAQ:CBAY) may have lost US$34m in value but insiders who invested last year have seen gains of around US$72k to date

Insiders who bought CymaBay Therapeutics, Inc. (NASDAQ:CBAY) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After accounting for the recent loss, the US$161k worth of shares they purchased is now worth US$233k, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for CymaBay Therapeutics

The Last 12 Months Of Insider Transactions At CymaBay Therapeutics

The President Sujal Shah made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$1.95 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.27. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

CymaBay Therapeutics insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$2.26. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

CymaBay Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of CymaBay Therapeutics

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests CymaBay Therapeutics insiders own 0.4% of the company, worth about US$1.1m. We prefer to see high levels of insider ownership.

So What Do The CymaBay Therapeutics Insider Transactions Indicate?

The fact that there have been no CymaBay Therapeutics insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think CymaBay Therapeutics insiders are doubting the company. 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. Case in point: We've spotted 2 warning signs for CymaBay Therapeutics you should be aware of, and 1 of these is a bit unpleasant.

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, but not derivative transactions.

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.

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