Yahoo Finance Cyanotech Corporation (NASDAQ:CYAN) insider upped their holding by 5.9% earlier this year
Looking at Cyanotech Corporation's (NASDAQ:CYAN ) insider transactions over the last year, we can see that insiders were net buyers. That is, there were more number of shares purchased by insiders than there were sold.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Cyanotech
The Last 12 Months Of Insider Transactions At Cyanotech
The Independent Chairman of the Board Michael Davis made the biggest insider purchase in the last 12 months. That single transaction was for US$108k worth of shares at a price of US$2.58 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.02. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Michael Davis bought a total of 80.79k shares over the year at an average price of US$2.61. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Cyanotech is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Cyanotech
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Cyanotech insiders own 18% of the company, worth about US$3.3m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Cyanotech Insiders?
The fact that there have been no Cyanotech insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in Cyanotech and their transactions don't cause us concern. 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. Our analysis shows 3 warning signs for Cyanotech (1 doesn't sit too well with us!) and we strongly recommend you look at these before investing.
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, 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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