KAILUA-KONA, HI - Cyanotech Corp (NASDAQ:CYAN) has reported a recent purchase of its common stock by company director and ten percent owner, Michael A. Davis. According to the latest filings, Davis acquired a total of 10,000 shares across two separate transactions, spending a total of $7,650.
The transactions took place on September 27 and September 30, with Davis buying 5,000 shares at $0.77 per share and another 5,000 shares at $0.76 per share, respectively. These purchases were made through a 10b5-1(c) trading plan, which was adopted on March 6, 2024. This plan allows company insiders to set up a trading schedule in advance to buy or sell stocks at predetermined times.
Following these transactions, Davis's direct holdings in Cyanotech have increased significantly. The filings indicate that the purchases were made indirectly by Davis, as trustee of the Michael Arlen Davis Revocable Trust. The trust's ownership in Cyanotech after these buys amounts to 1,460,440 shares.
Investors often scrutinize insider buying and selling as it can provide insights into an executive's confidence in the company's future performance. With Davis's recent stock purchases, market watchers may interpret this as a positive signal regarding Cyanotech's outlook.
Cyanotech, based in Hawaii, specializes in the production of high-value natural products derived from microalgae. The company is known for its dietary supplements and products that support health and wellness.
InvestingPro Insights
The recent insider buying by Michael A. Davis aligns with several positive indicators for Cyanotech Corp (NASDAQ:CYAN). According to InvestingPro data, the company has shown strong performance in recent months, with a remarkable 133.13% price total return over the past three months and an even more impressive 161.17% return over the last six months. This upward trajectory is further supported by an InvestingPro Tip suggesting that CYAN has seen a significant return over the last week, with data showing an 8.57% price total return in the past week.
Despite these gains, the stock may still have room to grow. InvestingPro's fair value estimate for CYAN stands at $0.87, indicating potential upside from the previous closing price of $0.76. This could explain Davis's decision to increase his stake in the company.
However, investors should note that CYAN operates with some financial challenges. An InvestingPro Tip highlights that the company has not been profitable over the last twelve months, with data showing a negative operating income of $4.22 million. Nevertheless, analysts are optimistic, anticipating sales growth in the current year and predicting that the company will return to profitability.
For those interested in a deeper analysis, InvestingPro offers 12 additional tips for CYAN, providing a more comprehensive view of the company's financial health and market position.
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