Dyne Therapeutics, Inc.'s (NASDAQ:DYN) stock rose 35% last week, but insiders who sold US$751k worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$12.83, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Dyne Therapeutics
The Last 12 Months Of Insider Transactions At Dyne Therapeutics
In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Joshua Brumm, sold US$618k worth of shares at a price of US$13.47 per share. That means that an insider was selling shares at slightly below the current price (US$21.16). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 100% of Joshua Brumm's holding.
Insiders in Dyne Therapeutics didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Dyne Therapeutics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Dyne Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$4.5m worth of Dyne Therapeutics stock, about 0.3% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Dyne Therapeutics Insiders?
The fact that there have been no Dyne Therapeutics insider transactions recently certainly doesn't bother us. Our analysis of Dyne Therapeutics insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 4 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Dyne Therapeutics.
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 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.