Did Cidara Therapeutics, Inc. (NASDAQ: CDTX) Insiders Buy More Stock?
We have lost count of the number of times insiders have racked up shares in a company that is improving dramatically. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. Shareholders may want to know if any insiders have bought or sold shares of Cidara Therapeutics, Inc. (NASDAQ: CDTX).
What is insider buying?
It is perfectly legal for company insiders, including board members, to buy and sell shares in a company. However, these insiders should disclose their business activities and not trade on inside information.
Insider trading isn’t the most important thing when it comes to long-term investing. But we also consider it foolish to ignore insider trading altogether. As Peter Lynch said, “Insiders can sell their shares for any number of reasons, but they buy them for one only: they think the price will go up.”
Cidara Therapeutics Insider Transactions in the Past Year
The biggest insider buy in the past twelve months was when CFO James Levine bought US $ 101,000 worth of shares at a price of US $ 2.01 per share. So it’s clear that an insider wanted to buy, even at a price higher than the current share price (US $ 2.00). While their opinion may have changed since the purchase, it at least suggests that they had confidence in the future of the business. In our opinion, the price paid by an insider for the shares is very important. Generally, we feel more optimistic about a stock if insiders bought stocks at higher prices than current prices, as this suggests that they viewed the stock as good value, even at a higher price. Student.
Fortunately, we note that last year, insiders paid $ 201,000 for 100,000 shares. But insiders sold 9.80k shares worth US $ 22k. Overall, Cidara Therapeutics insiders have been net buyers over the past year. You can see a visual representation of insider trading (by businesses and individuals) over the past 12 months, below. If you click on the chart you can see all of the individual trades including the stock price, individual and date!
NasdaqGM: CDTX Insider Trading Volume May 25, 2021
There are many other companies that have insiders who buy stocks. You probably do do not want to miss it free list of growing companies that insiders buy.
Cidara Therapeutics insiders sell shares
We’ve seen quite a bit of insider selling at Cidara Therapeutics, over the past three months. Insiders sold only US $ 22,000 of shares during this period. It’s not great to see insider sales, nor the lack of recent buyers. But the volume sold is so low that we really don’t mind.
Many investors like to check how well a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Insiders own 8.8% of the shares of Cidara Therapeutics, worth about US $ 8.5 million, according to our data. However, it is possible that insiders have an indirect interest through a more complex structure. While better than nothing, we’re not overly impressed with these titles.
So what do Cidara Therapeutics’ insider trading indicate?
We haven’t seen any insiders buy in the past three months, but we have seen some sales. But given that sales have been modest, we are not worried. But insiders have shown a greater appetite for action over the past year. The deals are good, but it would be more encouraging if Cidara Therapeutics insiders bought more shares of the company. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. At Simply Wall St, we found 4 warning signs for Cidara Therapeutics that deserve your attention before buying stocks.
But note: Cidara Therapeutics may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the people who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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