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Insiders who bought Alimera Sciences, Inc. (NASDAQ:ALIM) last year must be regretting not buying more as market cap hits US$39m

Alimera Sciences, Inc. (NASDAQ:ALIM) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 29% resulting in a US$8.9m addition to the company’s market value. In other words, the original US$209k purchase is now worth US$274k.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Alimera Sciences

Alimera Sciences Insider Transactions Over The Last Year

In fact, the recent purchase by Richard Eiswirth was the biggest purchase of Alimera Sciences shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of US$5.70. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 48.01k shares worth US$209k. But they sold 45.00 shares for US$433. In the last twelve months there was more buying than selling by Alimera Sciences insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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insider-trading-volume

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

Alimera Sciences Insiders Bought Stock Recently

Over the last quarter, Alimera Sciences insiders have spent a meaningful amount on shares. In total, insiders bought US$209k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Does Alimera Sciences Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Alimera Sciences insiders own about US$2.3m worth of shares (which is 5.9% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Alimera Sciences Insiders?

The recent insider purchases are 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 Alimera Sciences 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. At Simply Wall St, we've found that Alimera Sciences has 5 warning signs (1 is potentially serious!) that deserve your attention before going any further with your analysis.

But note: Alimera Sciences 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.

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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