In a recent move at Cyanotech Corp (NASDAQ:CYAN), Michael A. Davis, a key insider of the company, has made a notable purchase of the company's common stock. The transaction, which took place over two consecutive days, involved the acquisition of 10,000 shares for a total value of $7,200.
The stock purchases by Davis, who holds roles as both a director and a ten percent owner of Cyanotech, were executed at prices ranging from $0.70 to $0.74 per share. Specifically, on August 13, 2024, Davis bought 5,000 shares at $0.74 each, and on the following day, he acquired an additional 5,000 shares at the slightly lower price of $0.70 per share.
Following these transactions, Davis's total direct and indirect holdings in Cyanotech have increased significantly. These purchases are part of a pre-arranged trading plan dated March 6, 2024, indicating a structured strategy for stock transactions.
Cyanotech, headquartered in Kailua-Kona, Hawaii, is known for its production of microalgae for nutritional supplements, with a focus on health and well-being. This insider activity may be of interest to investors who track stock purchases by company executives as indicators of confidence in the firm's future prospects.
The transactions were disclosed in compliance with SEC requirements, and the details are now publicly accessible for investors' consideration.
InvestingPro Insights
Amidst the insider activity at Cyanotech Corp (NASDAQ:CYAN), the recent stock purchases by Michael A. Davis signal an intriguing moment for the company. To provide a broader context for investors, let's consider some real-time data and insights from InvestingPro.
InvestingPro Data shows Cyanotech's market capitalization stands at a modest $4.8 million, reflecting a relatively small player in the nutritional supplement industry. The company's revenue for the last twelve months as of Q1 2025 is reported at $23.82 million, with a growth rate of 10.25%, indicating a positive trend in sales. However, the company's profitability is a concern, evidenced by a negative P/E ratio of -0.91, and analysts have noted that the company was not profitable over the last twelve months. This aligns with the InvestingPro Tip that Cyanotech operates with a moderate level of debt, which can be a factor in its current valuation.
Investors may also take note of the stock's performance. Over the past six months, the price has experienced a significant increase of 52.18%, yet it remains 67.65% of its 52-week high, which could suggest room for growth or a cautious approach due to its volatility, as noted in another InvestingPro Tip. The company's stock price movements have indeed been quite volatile, a factor that risk-aware investors should consider.
For those looking deeper into Cyanotech's financial health, it's worth mentioning that the company's gross profit margin stands at 25.58%, which could be of interest to investors focusing on operational efficiency. Additionally, there are numerous other InvestingPro Tips available for Cyanotech, providing further insights into the company's financial performance and stock behavior.
For investors intrigued by the insider buying activity and seeking to understand the broader financial landscape of Cyanotech, additional InvestingPro Tips can be explored at https://www.investing.com/pro/CYAN.
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