Despite Accolade, Inc.'s recent decline, insiders have made a around US$27k profit after buying earlier this year.
Insiders who bought Accolade, Inc. (NASDAQ:ACCD) in the last 12 months may probably not pay attention to the stock's recent 8.0% drop. After taking the recent loss into consideration, the US$177k worth of stock they bought is now worth US$204k, 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 would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Accolade
The Last 12 Months Of Insider Transactions At Accolade
The Chairman of the Board & CEO Rajeev Singh made the biggest insider purchase in the last 12 months. That single transaction was for US$177k worth of shares at a price of US$10.09 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$11.64. 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.
The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Accolade 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.
Insiders At Accolade Have Bought Stock Recently
At Accolade,over the last quarter, we have observed quite a lot more insider buying than insider selling. In total, Chairman of the Board & CEO Rajeev Singh bought US$177k worth of shares in that time. On the other hand, President Robert Cavanaugh netted US$2.0k by selling. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 5.2% of Accolade shares, worth about US$43m. 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 Does This Data Suggest About Accolade Insiders?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Accolade insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 3 warning signs with Accolade and understanding them should be part of your investment process.
But note: Accolade 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, but not derivative transactions.
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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.
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