Read This Before Selling Xynomic Pharmaceuticals Holdings, Inc. (NASDAQ:XYN) Shares
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Xynomic Pharmaceuticals Holdings, Inc. (NASDAQ:XYN).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
View our latest analysis for Xynomic Pharmaceuticals Holdings
The Last 12 Months Of Insider Transactions At Xynomic Pharmaceuticals Holdings
Co-Founder Yinglin Xu made the biggest insider purchase in the last 12 months. That single transaction was for US$7.5m worth of shares at a price of US$10.15 each. That means that an insider was happy to buy shares at above the current price of US$3.40. 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 is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Yinglin Xu.
You can see the insider transactions (by 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!
Xynomic Pharmaceuticals Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Xynomic Pharmaceuticals Holdings Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Xynomic Pharmaceuticals Holdings insiders own about US$109m worth of shares (which is 69% of the company). 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 Xynomic Pharmaceuticals Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Xynomic Pharmaceuticals Holdings. Nice! Along with insider transactions, I recommend checking if Xynomic Pharmaceuticals Holdings is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Xynomic Pharmaceuticals Holdings 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 aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
