Insider Sellers Might Regret Selling TYK Medicines Shares at a Lower Price Than Current Market Value
TYK Medicines, Inc's (HKG:2410) value has fallen 12% in the last week, but insiders who sold CN¥4.0m worth of stock over the last year have had less success. Given that the average selling price of CN¥17.59 is still lower than the current share price, insiders would probably have been better off keeping their shares.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
TYK Medicines Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Non-Executive Director, Hong Gu, sold HK$2.7m worth of shares at a price of HK$19.05 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (HK$5.56). So it may not tell us anything about how insiders feel about the current share price. Hong Gu was the only individual insider to sell shares in the last twelve months.
Hong Gu ditched 230.00k shares over the year. The average price per share was CN¥17.59. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for TYK Medicines
I will like TYK Medicines better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does TYK Medicines Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that TYK Medicines insiders own about HK$45m worth of shares (which is 2.1% of the company). But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About TYK Medicines Insiders?
It doesn't really mean much that no insider has traded TYK Medicines shares in the last quarter. Still, the insider transactions at TYK Medicines in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. 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 TYK Medicines you should be aware of.
But note: TYK Medicines 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 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.