Many Tyme Technologies, Inc. (NASDAQ:TYME) insiders ditched their stock over the past year, which may be of interest to the company’s shareholders. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Tyme Technologies
In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Steven Hoffman, sold US$613k worth of shares at a price of US$1.27 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.05). So it may not shed much light on insider confidence at current levels.
Over the last year we saw more insider selling of Tyme Technologies shares, than buying. The average sell price was around US$1.35. Insider selling doesn’t make us excited to buy. However, we do note that the average sale price was significantly higher than the current share price (which is US$1.05). The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
NasdaqCM:TYME Insider Trading Volume September 14th 2021
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Tyme Technologies Insiders Are Selling The Stock
There was substantially more insider selling, than buying, of Tyme Technologies shares over the last three months. In total, insider Michael Demurjian sold US$302k worth of shares in that time. On the other hand we note Acting Chief Medical Officer Jan Van Tornout bought US$1.1k worth of shares. Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the company has been fully valued in recent months.
Insider Ownership of Tyme Technologies
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. It appears that Tyme Technologies insiders own 31% of the company, worth about US$57m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Tyme Technologies Insiders?
The insider sales have outweighed the insider buying, at Tyme Technologies, in the last three months. Zooming out, the longer term picture doesn’t give us much comfort. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. When we did our research, we found 5 warning signs for Tyme Technologies (2 are a bit unpleasant!) that we believe deserve your full attention.
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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.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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