We would be surprised if Myovant Sciences Ltd. (NYSE: MYOV) shareholders failed to notice that CEO and director David Marek recently sold US$257,000 worth of stock at US$10.45 per share. This sale represented 29% of their stake, so that raises our eyebrows.
Discover our latest analysis for Myovant Sciences
Myovant Sciences insider trading over the past year
In fact, the recent sale by CEO and Director David Marek wasn’t their only sale of Myovant Sciences stock this year. Earlier in the year, they recouped US$14.68 per share in a -US$292,000 sale. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. The silver lining is that this sale took place above the last price (US$9.38). It is therefore difficult to draw a firm conclusion.
Last year, Myovant Sciences insiders did not buy any shares of the company. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you click on the chart, you can see all individual trades including stock price, individual and date!
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Does Myovant Sciences claim high insider ownership?
For an ordinary shareholder, it is worth checking how many shares are held by company insiders. High insider participation often makes company management more concerned with the interests of shareholders. It appears that Myovant Sciences insiders own 2.2% of the company, worth around $20 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.
What could insider trading at Myovant Sciences tell us?
Insiders have been selling stocks recently, but they haven’t been buying. And even if we look at last year, we haven’t seen any purchases. Insiders hold shares, but we remain quite cautious, given the history of sales. We are in no rush to buy! So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To help you, we found 4 warning signs (1 should not be ignored!) that you should know before buying Myovant Sciences shares.
Sure Myovant Sciences may not be the best stock to buy. So you might want to see this free set of high quality companies.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.