Even if it's not a huge purchase, we think it was good to see that Edwin Rock, the Senior VP & Chief Medical Officer of GlycoMimetics, Inc. (NASDAQ:GLYC) recently shelled out US$79k to buy stock, at US$0.26 per share. While that isn't the hugest buy, it actually boosted their shareholding by 81%, which is good to see.
GlycoMimetics Insider Transactions Over The Last Year
Notably, that recent purchase by Senior VP & Chief Medical Officer Edwin Rock was not the only time they bought GlycoMimetics shares this year. They previously made an even bigger purchase of US$90k worth of shares at a price of US$1.38 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.33). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
While GlycoMimetics insiders bought shares during the last year, they didn't sell. They paid about US$0.45 on average. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Insider Ownership Of GlycoMimetics
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. Based on our data, GlycoMimetics insiders have about 3.1% of the stock, worth approximately US$537k. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About GlycoMimetics Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. 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 GlycoMimetics stock. 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. For example, GlycoMimetics has 6 warning signs (and 4 which don't sit too well with us) we think you should know about.
But note: GlycoMimetics may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
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