We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
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. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
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The Last 12 Months Of Insider Transactions At Syndax Pharmaceuticals
Over the last year, we can see that the biggest insider purchase was by CEO & Director Briggs Morrison for US$152k worth of shares, at about US$7.56 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.53). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing 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.
Over the last year, we can see that insiders have bought 21712 shares worth US$159k. In the last twelve months Syndax Pharmaceuticals insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Syndax Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Syndax Pharmaceuticals Insiders Bought Stock Recently
Over the last quarter, Syndax Pharmaceuticals insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$158k worth of shares. This is a positive in our book as it implies some confidence.
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our information indicates that Syndax Pharmaceuticals insiders own about US$185k worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Does This Data Suggest About Syndax Pharmaceuticals Insiders?
It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. 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 Syndax Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Thank you for reading.