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