We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Syndax Pharmaceuticals Insider Transactions Over The Last Year
CEO & Director Briggs Morrison made the biggest insider purchase in the last 12 months. That single transaction was for US$152k worth of shares at a price of US$7.56 each. So it's clear an insider wanted to buy, at around the current price, which is US$8.69. That means they have been optimistic about the company in the past, though they may have changed their mind. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Syndax Pharmaceuticals insiders decided to buy shares at close to current prices.
While Syndax Pharmaceuticals insiders bought shares last year, they didn't sell. Their average price was about US$6.68. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by 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 growing companies that insiders are buying.
Insiders at Syndax Pharmaceuticals Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Syndax Pharmaceuticals. We can see that CEO & Director Briggs Morrison paid US$59k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership of Syndax Pharmaceuticals
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Syndax Pharmaceuticals, though insiders do hold about US$309k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. This level of insider ownership is notably low, and not very encouraging.
What Might The Insider Transactions At Syndax Pharmaceuticals Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us 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 Syndax Pharmaceuticals stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Syndax Pharmaceuticals.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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