Investors who take an interest in Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) should definitely note that the CEO, President & Director, Todd Brady, recently paid US$5.10 per share to buy US$102k worth of the stock. Although the purchase only increased their holding by 8.7%, it is still a solid purchase in our view.
Aldeyra Therapeutics Insider Transactions Over The Last Year
Notably, that recent purchase by CEO, President & Director Todd Brady was not the only time they bought Aldeyra Therapeutics shares this year. They previously made an even bigger purchase of US$127k worth of shares at a price of US$6.03 per share. That means that an insider was happy to buy shares at above the current price of US$5.66. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Aldeyra Therapeutics insiders were buying shares, but not selling. You can see the insider transactions (by 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!
Aldeyra Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Aldeyra Therapeutics Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Aldeyra Therapeutics insiders have about 1.5% of the stock, worth approximately US$2.3m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Aldeyra Therapeutics Tell Us?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Aldeyra Therapeutics stock. Of course, the future is what matters most. So if you are interested in Aldeyra Therapeutics, you should check out this free report on analyst forecasts for the company.
Of course Aldeyra Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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, but not derivative transactions.
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