Krystal Biotech Insiders Sell US$16m Of Stock, Possibly Signalling Caution
Simply Wall St · 01/29 10:53

In the last year, many Krystal Biotech, Inc. (NASDAQ:KRYS) insiders sold a substantial stake in the company which may have sparked shareholders' attention. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Krystal Biotech

Krystal Biotech Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Lead Independent Director, Daniel Janney, for US$6.4m worth of shares, at about US$129 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$116. So it is hard to draw any strong conclusion from it.

Krystal Biotech insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:KRYS Insider Trading Volume January 29th 2024

I will like Krystal Biotech better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Krystal Biotech

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Krystal Biotech insiders own 12% of the company, worth about US$406m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Krystal Biotech Tell Us?

The fact that there have been no Krystal Biotech insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Krystal Biotech, we can't say the same about the selling of shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 1 warning sign for Krystal Biotech you should know about.

But note: Krystal Biotech 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 of direct interests only, but not derivative transactions or indirect interests.