We wouldn't blame Cytokinetics, Incorporated (NASDAQ:CYTK) shareholders if they were a little worried about the fact that Robert Blum, the CEO, President & Director recently netted about US$1.2m selling shares at an average price of US$52.60. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 7.1%.
Cytokinetics Insider Transactions Over The Last Year
In fact, the recent sale by Robert Blum was the biggest sale of Cytokinetics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$51.82. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Cytokinetics insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of Cytokinetics
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Cytokinetics insiders own about US$31m worth of shares. That equates to 0.5% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Cytokinetics Insider Transactions Indicate?
Insiders sold Cytokinetics shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cytokinetics. Case in point: We've spotted 5 warning signs for Cytokinetics you should be aware of, and 1 of these is a bit concerning.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com