Insiders who bought this year lost US$5.2k as Accelerate Diagnostics, Inc. (NASDAQ:AXDX) sheds US$41m in value
Insiders who bought US$150k worth of Accelerate Diagnostics, Inc.'s (NASDAQ:AXDX) stock at an average buy price of US$5.50 over the last year may be disappointed by the recent 11% decrease in the stock. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$145k which is not ideal.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Accelerate Diagnostics
Accelerate Diagnostics Insider Transactions Over The Last Year
In fact, the recent purchase by Jack Schuler was the biggest purchase of Accelerate Diagnostics shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was higher than US$5.31 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Jack Schuler.
You can see a visual depiction of insider transactions (by companies and 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!
Accelerate Diagnostics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Accelerate Diagnostics
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Accelerate Diagnostics insiders own 48% of the company, worth about US$157m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Accelerate Diagnostics Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Accelerate Diagnostics. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Accelerate Diagnostics. For example, Accelerate Diagnostics has 4 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
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.
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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