Despite Accolade's Pullback, Insiders Still Gained US$31k
Insiders who bought Accolade, Inc. (NASDAQ:ACCD) stock lover the last 12 months are probably not as affected by last week’s 10% loss. Even after accounting for the recent loss, the US$177k worth of stock purchased by them is now worth US$208k or in other words, their investment continues to give good returns.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out 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. We do like to see buying, but this purchase was made at well below the current price of US$11.86. 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.
Over the last year, we can see that insiders have bought 17.57k shares worth US$177k. But insiders sold 13.71k shares worth US$157k. In the last twelve months there was more buying than selling by Accolade insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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 insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Accolade Have Sold Stock Recently
The last quarter saw substantial insider selling of Accolade shares. In total, insiders dumped US$147k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Accolade insiders own 1.8% of the company, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Accolade Tell Us?
Insiders sold Accolade shares recently, but they didn't buy any. But we take heart from prior transactions. We like that insiders own a fair amount of the company. So we're happy enough to look past some selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Accolade. In terms of investment risks, we've identified 3 warning signs with Accolade and understanding these should be part of your investment process.
Of course Accolade 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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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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