Cytokinetics CEO, President & Director Robert Blum Sells 44% Of Holding
Some Cytokinetics, Incorporated (NASDAQ:CYTK) shareholders may be a little concerned to see that the CEO, President & Director, Robert Blum, recently sold a substantial US$6.8m worth of stock at a price of US$69.33 per share. That's a big disposal, and it decreased their holding size by 44%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Cytokinetics
Notably, that recent sale by Robert Blum is the biggest insider sale of Cytokinetics shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$69.39. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 44% of Robert Blum's holding.
In the last year Cytokinetics insiders didn't buy any company stock. 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!
View our latest analysis for Cytokinetics
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insider Ownership Of Cytokinetics
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Cytokinetics insiders own about US$40m worth of shares. That equates to 0.4% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Cytokinetics Tell Us?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cytokinetics. Be aware that Cytokinetics is showing 4 warning signs in our investment analysis, and 1 of those is a bit concerning...
Of course Cytokinetics may not be the best stock to buy. So you may wish to see this free collection of high quality 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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