Cyanotech exec buys $7,500 worth of stock amid trading plan By Investing.com

Cyanotech Corporation (NASDAQ:CYAN) director Michael A. Davis purchased additional shares of the company, according to a recent filing with the SEC. The transactions, which took place on September 23 and 24, involved the purchase of 10,000 shares of Cyanotech common stock for a total of $7,500, with prices ranging from $0.73 to $0.77 per share.

The purchases were made pursuant to a predetermined trading plan, known as a 10b5-1(c) plan, which was adopted on March 6, 2024. Such plans allow company insiders to set a trading schedule in advance to buy or sell shares. at predetermined times, providing an affirmative defense to allegations of trading in material non-public information.

Davis, who serves as a director and ten percent owner of the company, significantly increased his direct holdings with these transactions. Following the recent acquisitions, 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 headquartered in Hawaii, is known for its activity in the medicinal chemicals and botanicals sector. The company’s business address is located in Kailua-Kona, HI, where it operates under the trade symbol CYAN.

Investors often monitor the trading activities of company insiders, such as executives and directors, to gain information about the company’s performance and their confidence in the company’s prospects. Insider buyouts, in particular, can signal confidence in the company’s future performance, although they do not guarantee any specific outcome for stock performance.

The file was signed by Laura L. Taylor, by proxy, on September 25, 2024.

InvestingPro Insights

The recent purchase by Cyanotech Corporation (NASDAQ:CYAN) executive Michael A. Davis aligns with the positive outlook some analysts have for the company, as reflected in InvestingPro Tips. In particular, analysts are anticipating an uptick in sales this year, which could be a contributing factor to Davis’ decision to raise his stake. Moreover, Cyanotech’s share price has shown a strong return in the last three months with a remarkable increase of 164.15%, which could have influenced the timing of the acquisition under the default 10b5-1(c) plan.

InvestingPro Data further reveals that Cyanotech has a market cap of $5 million, indicating a relatively small company size that could offer growth potential. The trailing twelve month revenue growth from Q1 2025 is 10.25%, underscoring the company’s ability to grow sales. Furthermore, the gross profit margin for the same period was 25.58%, suggesting that the company maintains a quarter of its revenue as gross profit.

While the company is operating with a moderate level of debt and has not been profitable in the past twelve months, analysts expect Cyanotech to become profitable this year. This potential for profitability, combined with the director’s recent share purchase, 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 looking for income-generating investments.

For investors seeking additional information and in-depth 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.

This article was generated with support from AI and reviewed by an editor. For more information, see T&C.