Cyanotech Corporation (NASDAQ:CYAN) director Michael A. Davis has acquired additional shares of the company, according to a recent SEC filing. The transactions, which took place on September 23 and 24, involved the purchase of 10,000 shares of Cyanotech's common stock for a total of $7,500, with prices ranging between $0.73 and $0.77 per share.
The purchases were made under a pre-arranged trading plan, known as a 10b5-1(c) plan, which was adopted on March 6, 2024. Such plans allow company insiders to set up a trading schedule in advance to buy or sell shares at predetermined times, providing an affirmative defense against accusations of trading on non-public, material information.
Davis, who serves as a director and a ten-percent owner of the company, has increased his direct holdings significantly with these transactions. Following the recent purchases, Davis now indirectly owns 1,440,440 shares through his capacity as trustee of the Michael Arlen Davis Revocable Trust.
Cyanotech, incorporated in Nevada and based in Hawaii, is known for its work in the medicinal chemicals and botanical products sector. The company's business address is located in Kailua-Kona, HI, where it operates under the trading symbol CYAN.
Investors often monitor the trading activities of company insiders such as directors and executives for insights into the company's performance and their confidence in the firm's prospects. Insider purchases, in particular, can signal confidence in the company's future performance, although they do not guarantee any specific outcomes for the stock's performance.
The filing was signed by Laura L. Taylor, by Power of Attorney, on September 25, 2024.
InvestingPro Insights
The recent insider purchase by Cyanotech Corporation (NASDAQ:CYAN) director Michael A. Davis aligns with the positive outlook some analysts have for the company, as reflected in the InvestingPro Tips. Notably, analysts are anticipating sales growth in the current year, which could be a contributing factor to Davis's decision to increase his stake. Moreover, Cyanotech's stock price has shown a strong return over the last three months, with a remarkable 164.15% increase, which may have influenced the timing of the purchase under the pre-arranged 10b5-1(c) plan.
InvestingPro Data further reveals that Cyanotech has a market capitalization of 5 million USD, indicating a relatively small company size that could offer growth potential. The revenue growth over the last twelve months as of Q1 2025 stands at 10.25%, underscoring the company’s ability to increase sales. Additionally, the gross profit margin during the same period was 25.58%, which suggests that the company is maintaining a quarter of its revenue as gross profit.
While the company operates with a moderate level of debt and has not been profitable over the last twelve months, analysts predict Cyanotech will turn profitable this year. This potential for profitability, combined with the director's recent share acquisition, could signal a positive outlook for the company's future financial performance. However, potential investors should note that Cyanotech does not pay dividends, which may be a consideration for those seeking income-generating investments.
For investors seeking further insights and detailed analysis, there are additional InvestingPro Tips available on Cyanotech, which can be found at https://www.investing.com/pro/CYAN. These tips can provide a deeper understanding of the company's financial health and market position.
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