Insiders seem to have made the most of their holdings by selling US$71k worth of Lyell Immunopharma, Inc. (NASDAQ:LYEL) stock at an average sell price of US$6.40 during the past year. After the stock price dropped 7.4% last week, the company's market value declined by US$60m, but insiders were able to mitigate their losses.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Lyell Immunopharma
The Last 12 Months Of Insider Transactions At Lyell Immunopharma
The Founder & Executive Chairman, Richard Klausner, made the biggest insider sale in the last 12 months. That single transaction was for US$71k worth of shares at a price of US$6.40 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$2.99. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was Richard Klausner.
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!
I will like Lyell Immunopharma better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership Of Lyell Immunopharma
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Lyell Immunopharma insiders own about US$27m worth of shares. That equates to 3.6% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Lyell Immunopharma Tell Us?
The fact that there have been no Lyell Immunopharma insider transactions recently certainly doesn't bother us. Still, the insider transactions at Lyell Immunopharma in the last 12 months are not very heartening. But we do like the fact that insiders own a fair chunk of the company. 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. To that end, you should learn about the 3 warning signs we've spotted with Lyell Immunopharma (including 1 which makes us a bit uncomfortable).
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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