U.S. Markets open in 8 hrs 59 mins
  • S&P Futures

    3,836.25
    -6.25 (-0.16%)
     
  • Dow Futures

    30,757.00
    -85.00 (-0.28%)
     
  • Nasdaq Futures

    13,550.25
    +64.75 (+0.48%)
     
  • Russell 2000 Futures

    2,131.70
    -14.10 (-0.66%)
     
  • Crude Oil

    52.95
    +0.34 (+0.65%)
     
  • Gold

    1,845.70
    -5.20 (-0.28%)
     
  • Silver

    25.41
    -0.13 (-0.52%)
     
  • EUR/USD

    1.2164
    +0.0019 (+0.1581%)
     
  • 10-Yr Bond

    1.0400
    -1.0400 (-100.00%)
     
  • Vix

    23.02
    -23.19 (-100.00%)
     
  • GBP/USD

    1.3733
    +0.0058 (+0.4216%)
     
  • USD/JPY

    103.7180
    -0.0380 (-0.0366%)
     
  • BTC-USD

    31,567.79
    -238.97 (-0.75%)
     
  • CMC Crypto 200

    634.90
    -4.24 (-0.66%)
     
  • FTSE 100

    6,654.01
    +15.16 (+0.23%)
     
  • Nikkei 225

    28,633.79
    +87.59 (+0.31%)
     

Chair of the Board Richard Douglas Just Bought Shares In Aldeyra Therapeutics, Inc. (NASDAQ:ALDX)

Simply Wall St
·3 min read

Potential Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) shareholders may wish to note that the Chair of the Board, Richard Douglas, recently bought US$110k worth of stock, paying US$2.75 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 47%.

Check out our latest analysis for Aldeyra Therapeutics

The Last 12 Months Of Insider Transactions At Aldeyra Therapeutics

CEO, President & Director Todd Brady made the biggest insider purchase in the last 12 months. That single transaction was for US$127k worth of shares at a price of US$6.03 each. That means that even when the share price was higher than US$2.01 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Aldeyra Therapeutics insiders bought shares last year, they didn't sell. They paid about US$4.84 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NasdaqCM:ALDX Recent Insider Trading, March 18th 2020
NasdaqCM:ALDX Recent Insider Trading, March 18th 2020

Aldeyra Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$1.1m worth of Aldeyra Therapeutics stock, about 1.8% of the company. We consider this fairly low insider ownership.

So What Do The Aldeyra Therapeutics Insider Transactions Indicate?

It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 5 warning signs we've spotted with Aldeyra Therapeutics (including 1 which is potentially serious).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.