Yahoo Finance As Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) hits US$998m market cap, insiders may be dismayed about not purchasing higher quantities
Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a US$270m addition to the company’s market value. Put another way, the original US$65k acquisition is now worth US$108k.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Crinetics Pharmaceuticals
The Last 12 Months Of Insider Transactions At Crinetics Pharmaceuticals
Over the last year, we can see that the biggest insider purchase was by Founder R. Struthers for US$65k worth of shares, at about US$13.10 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$21.68. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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 Crinetics Pharmaceuticals Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Crinetics Pharmaceuticals insiders own 3.5% of the company, worth about US$35m. 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 Crinetics Pharmaceuticals Insiders?
The fact that there have been no Crinetics Pharmaceuticals insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Crinetics Pharmaceuticals and we see no evidence to suggest they are worried about the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Crinetics Pharmaceuticals. To help with this, we've discovered 4 warning signs (2 are potentially serious!) that you ought to be aware of before buying any shares in Crinetics Pharmaceuticals.
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, 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
