Nyrada Insiders May Regret Not Buying More, Market Cap Hits AU$207m
Last week, Nyrada Inc. (ASX:NYR) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 16% last week, resulting in a AU$29m increase in the company's market worth, implying a 872% gain on their initial purchase. As a result, the stock they originally bought for AU$660.0k is now worth AU$6.42m.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Nyrada Insider Transactions Over The Last Year
The Non-Executive Chairman John Moore made the biggest insider purchase in the last 12 months. That single transaction was for AU$426k worth of shares at a price of AU$0.12 each. We do like to see buying, but this purchase was made at well below the current price of AU$0.85. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Happily, we note that in the last year insiders paid AU$660k for 7.55m shares. But they sold 600.00k shares for AU$388k. In total, Nyrada insiders bought more than they sold over the last year. Their average price was about AU$0.087. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Nyrada
Nyrada is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Nyrada Have Sold Stock Recently
We've seen more insider selling than insider buying at Nyrada recently. In total, Non-Executive Director Ian Dixon sold AU$388k worth of shares in that time. On the other hand we note insiders bought AU$90k worth of shares. We don't view these transactions as a positive sign.
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. We usually like to see fairly high levels of insider ownership. Nyrada insiders own about AU$84m worth of shares (which is 41% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Nyrada Tell Us?
The insider sales have outweighed the insider buying, at Nyrada, in the last three months. In contrast, they appear keener if you look at the last twelve months. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. 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 instance, we've identified 4 warning signs for Nyrada (1 is concerning) you should be aware of.
But note: Nyrada may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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