Some Krystal Biotech, Inc. (NASDAQ:KRYS) shareholders may be a little concerned to see that the Founder, Krish Krishnan, recently sold a substantial US$7.6m worth of stock at a price of US$308 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.7%.

The Last 12 Months Of Insider Transactions At Krystal Biotech

In fact, the recent sale by Krish Krishnan was the biggest sale of Krystal Biotech shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$302. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

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!

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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 10% of the company, worth about US$924m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Krystal Biotech Insiders?

Insiders sold Krystal Biotech shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But since Krystal Biotech is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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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.