Those following along with Ventyx Biosciences, Inc. (NASDAQ:VTYX) will no doubt be intrigued by the recent purchase of shares by Raju Mohan, Founder of the company, who spent a stonking US$960k on stock at an average price of US$1.92. Aside from being a solid chunk in its own right, the deft move also saw their holding increase by some 30%.

Ventyx Biosciences Insider Transactions Over The Last Year

In fact, the recent purchase by Raju Mohan was the biggest purchase of Ventyx Biosciences shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.65. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

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!

Ventyx Biosciences is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Ventyx Biosciences 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Ventyx Biosciences insiders own about US$7.1m worth of shares (which is 4.0% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Ventyx Biosciences Insiders?

The recent insider purchase is heartening. And the longer term insider transactions also give 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 Ventyx Biosciences stock. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Ventyx Biosciences.

Of course Ventyx Biosciences may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.