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Insiders who bought Ventyx Biosciences, Inc. (NASDAQ:VTYX) in the last 12 months may probably not pay attention to the stock's recent 27% drop. After accounting for the recent loss, the US$959.9k worth of shares they purchased is now worth US$1.14m, suggesting a good return on their investment.
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.
Check out our latest analysis for Ventyx Biosciences
The Last 12 Months Of Insider Transactions At Ventyx Biosciences
Over the last year, we can see that the biggest insider purchase was by Founder Raju Mohan for US$960k worth of shares, at about US$2.01 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.28. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Ventyx Biosciences 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. We usually like to see fairly high levels of insider ownership. From our data, it seems that Ventyx Biosciences insiders own 4.2% of the company, worth about US$7.3m. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About Ventyx Biosciences Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Ventyx Biosciences insiders are expecting a bright future. While it's good to be aware of 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. To that end, you should learn about the 4 warning signs we've spotted with Ventyx Biosciences (including 1 which is concerning).