The recent price decline of 86% in Syros Pharmaceuticals, Inc.'s (NASDAQ:SYRS) stock may have disappointed insiders who bought US$321.9k worth of shares at an average price of US$1.61 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$71.8k which is not ideal.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Syros Pharmaceuticals Insider Transactions Over The Last Year

The Chief Financial Officer Jason Haas made the biggest insider purchase in the last 12 months. That single transaction was for US$161k worth of shares at a price of US$1.68 each. That means that even when the share price was higher than US$0.36 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

While Syros Pharmaceuticals insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. 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.

Syros Pharmaceuticals Insiders Bought Stock Recently

Over the last quarter, Syros Pharmaceuticals insiders have spent a meaningful amount on shares. In total, insiders bought US$322k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

Does Syros Pharmaceuticals 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Syros Pharmaceuticals insiders own 2.6% of the company, worth about US$251k. I generally like to see higher levels of ownership.

What Might The Insider Transactions At Syros Pharmaceuticals Tell Us?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Syros Pharmaceuticals insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Syros Pharmaceuticals has 8 warning signs (and 6 which shouldn't be ignored) we think you should know about.

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.