Insider Buyers At aTyr Pharma Likely Disappointed With 19% Slide

The recent 19% drop in aTyr Pharma, Inc.’s (NASDAQ:ATYR) stock could come as a blow to insiders who purchased US$911.8k worth of stock at an average buy price of US$0.91 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$442.1k, which is not great.

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.

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The Last 12 Months Of Insider Transactions At aTyr Pharma

The insider Paul Schimmel made the biggest insider purchase in the last 12 months. That single transaction was for US$912k worth of shares at a price of US$0.94 each. So it’s clear an insider wanted to buy, even at a higher price than the current share price (being US$0.44). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was Paul Schimmel.

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!

See our latest analysis for aTyr Pharma

aTyr Pharma is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

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. I reckon it’s a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$1.1m worth of aTyr Pharma stock, about 2.5% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At aTyr Pharma Tell Us?

It doesn’t really mean much that no insider has traded aTyr Pharma shares in the last quarter. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think aTyr Pharma insiders are doubting the company. While it’s good to be aware of what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 4 warning signs we’ve spotted with aTyr Pharma (including 2 which are potentially serious).

If you would prefer to check out another company — one with potentially superior financials — then do not miss this free list of interesting companies, that have HIGH return on equity 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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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.