Potential CymaBay Therapeutics, Inc. (NASDAQ:CBAY) shareholders may wish to note that the President, Sujal Shah, recently bought US$100k worth of stock, paying US$1.95 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 43%.
View our latest analysis for CymaBay Therapeutics
The Last 12 Months Of Insider Transactions At CymaBay Therapeutics
Notably, that recent purchase by Sujal Shah is the biggest insider purchase of CymaBay Therapeutics shares that we've seen in the last year. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.38. 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.
While CymaBay Therapeutics insiders bought shares during the last year, they didn't sell. Their average price was about US$2.26. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does CymaBay Therapeutics Boast High Insider Ownership?
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. Our data isn't picking up on much insider ownership at CymaBay Therapeutics, though insiders do hold about US$700k worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Do The CymaBay Therapeutics Insider Transactions Indicate?
It is good to see the recent insider purchase. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on CymaBay Therapeutics stock. 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. At Simply Wall St, we've found that CymaBay Therapeutics has 4 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.