Alpha Teknova Insiders Land Bargain With Gains Of US$1.4m
Insiders who bought Alpha Teknova, Inc. (NASDAQ:TKNO) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After taking the recent loss into consideration, the US$1.78m worth of stock they bought is now worth US$3.19m, indicating that their investment yielded a positive return.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Alpha Teknova
Alpha Teknova Insider Transactions Over The Last Year
The Director J. Mackowski made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$1.85 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.31. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Happily, we note that in the last year insiders paid US$1.8m for 963.23k shares. But they sold 14.52k shares for US$50k. In the last twelve months there was more buying than selling by Alpha Teknova insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Are Alpha Teknova Insiders Buying Or Selling?
Over the last three months, we've seen a bit of insider buying at Alpha Teknova. Chief Commercial Officer Ken Gelhaus purchased US$6.2k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Alpha Teknova Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. 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 15% of Alpha Teknova shares, worth about US$20m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Alpha Teknova Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Alpha Teknova and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 4 warning signs for Alpha Teknova (1 shouldn't be ignored!) and we strongly recommend you look at them before investing.
But note: Alpha Teknova may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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.
