Yahoo Finance Timothy Coughlin Bought 833% More Shares In aTyr Pharma
Whilst it may not be a huge deal, we thought it was good to see that the aTyr Pharma, Inc. (NASDAQ:LIFE) Independent Chairman of the Board, Timothy Coughlin, recently bought US$88k worth of stock, for US$1.75 per share. Even though that isn't a massive buy, it did increase their holding by 833%, which is arguably a good sign.
Check out our latest analysis for aTyr Pharma
aTyr Pharma Insider Transactions Over The Last Year
Notably, that recent purchase by Timothy Coughlin is the biggest insider purchase of aTyr Pharma shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$1.90. 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 do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
While aTyr Pharma insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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$3.3m worth of aTyr Pharma stock, about 2.6% of the company. We consider this fairly low insider ownership.
So What Does This Data Suggest About aTyr Pharma Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that aTyr Pharma insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that aTyr Pharma is showing 2 warning signs in our investment analysis, and 1 of those is concerning...
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
