Possible Turnaround For Eikon Therapeutics Insiders, Still Down US$852k
Some of the losses seen by insiders who purchased US$2.00m worth of Eikon Therapeutics, Inc. (NASDAQ:EIKN) shares over the past year were recovered after the stock increased by 12% over the past week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$852k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Eikon Therapeutics Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Kenneth Frazier for US$2.0m worth of shares, at about US$18.00 per share. That means that an insider was happy to buy shares at above the current price of US$10.33. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Kenneth Frazier.
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 Eikon Therapeutics
Eikon Therapeutics 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 Eikon Therapeutics Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 5.9% of Eikon Therapeutics shares, worth about US$33m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Eikon Therapeutics Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Eikon Therapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Eikon Therapeutics insiders are doubting the company, and they do own shares. 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. Be aware that Eikon Therapeutics is showing 4 warning signs in our investment analysis, and 2 of those make us uncomfortable...
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 of direct interests only, but not derivative transactions or indirect interests.
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