We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Taysha Gene Therapies, Inc. (NASDAQ:TSHA).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Taysha Gene Therapies

The Last 12 Months Of Insider Transactions At Taysha Gene Therapies

The Independent Director Paul Manning made the biggest insider purchase in the last 12 months. That single transaction was for US$252k worth of shares at a price of US$20.98 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$25.94. 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.

While Taysha Gene Therapies 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. 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).

Taysha Gene Therapies Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Taysha Gene Therapies. Overall, two insiders shelled out US$278k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

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. We usually like to see fairly high levels of insider ownership. Taysha Gene Therapies insiders own about US$409m worth of shares (which is 42% of the company). 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 Taysha Gene Therapies Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Taysha Gene Therapies. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Taysha Gene Therapies. To that end, you should learn about the 3 warning signs we've spotted with Taysha Gene Therapies (including 1 which can't be ignored).

Of course Taysha Gene Therapies may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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. 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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