When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in aTyr Pharma, Inc.'s (NASDAQ:ATYR) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for aTyr Pharma

The Last 12 Months Of Insider Transactions At aTyr Pharma

Over the last year, we can see that the biggest insider purchase was by Independent Director Paul Schimmel for US$185k worth of shares, at about US$1.93 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.74. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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 want to know exactly who sold, for how much, and when, simply click on the graph below!

aTyr Pharma is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of aTyr Pharma

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 2.4% of aTyr Pharma shares, worth about US$7.4m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About aTyr Pharma Insiders?

It doesn't really mean much that no insider has traded aTyr Pharma shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if aTyr Pharma insiders bought more shares in the company. 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 instance, we've identified 4 warning signs for aTyr Pharma (2 are a bit concerning) you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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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.