Last week, Lyell Immunopharma, Inc.'s (NASDAQ:LYEL) stock jumped 14%, but insiders who sold US$527k worth of stock in over the past year are likely to be in a better position. Selling at an average price of US$17.71, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Lyell Immunopharma Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Principal Executive Officer, Lynn Seely, sold US$174k worth of shares at a price of US$23.39 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$14.71). So it may not shed much light on insider confidence at current levels.

In the last year Lyell Immunopharma insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insiders At Lyell Immunopharma Have Sold Stock Recently

We have seen a bit of insider selling at Lyell Immunopharma, over the last three months. Insiders divested only US$41k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.

Does Lyell Immunopharma 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. We usually like to see fairly high levels of insider ownership. Insiders own 7.2% of Lyell Immunopharma shares, worth about US$26m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Lyell Immunopharma Tell Us?

We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. Recent sales exacerbate our caution arising from analysis of Lyell Immunopharma insider transactions. The modest level of insider ownership is, at least, some comfort. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example, Lyell Immunopharma has 4 warning signs (and 2 which are significant) we think you should know about.

But note: Lyell Immunopharma 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.

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.