Even if it’s not a huge purchase, we think it was good to see that Christopher Neugent, the Independent Director of Calyxt, Inc. (NASDAQ:CLXT) recently shelled out US$59k to buy stock, at US$3.95 per share. Even though that isn’t a massive buy, it did increase their holding by 510%, which is arguably a good sign.
The Last 12 Months Of Insider Transactions At Calyxt
Notably, that recent purchase by Christopher Neugent is the biggest insider purchase of Calyxt shares that we’ve seen in the last year. That implies that an insider found the current price of US$4.25 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Calyxt share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 20.00k shares for US$92k. But they sold 15.65k shares for US$74k. In the last twelve months there was more buying than selling by Calyxt insiders. They paid about US$4.60 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Calyxt Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Calyxt insiders have about 0.8% of the stock, worth approximately US$1.2m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Calyxt Insiders?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn’t make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Calyxt stock. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Calyxt. For example, Calyxt has 3 warning signs (and 1 which is potentially serious) we think you should know about.
But note: Calyxt may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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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