Insiders made the right call by buying US$1.2m Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) stock this year, currently sit on US$349k profit
Insiders who bought Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) in the last 12 months may probably not pay attention to the stock's recent 10% drop. After accounting for the recent loss, the US$1.2m worth of shares they purchased is now worth US$1.5m, suggesting a good return on their investment.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Aldeyra Therapeutics
The Last 12 Months Of Insider Transactions At Aldeyra Therapeutics
In the last twelve months, the biggest single purchase by an insider was when insider Joseph Edelman bought US$1.1m worth of shares at a price of US$5.03 per share. We do like to see buying, but this purchase was made at well below the current price of US$6.31. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Aldeyra Therapeutics insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Aldeyra Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Aldeyra Therapeutics 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. We usually like to see fairly high levels of insider ownership. Insiders own 19% of Aldeyra Therapeutics shares, worth about US$71m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Aldeyra Therapeutics Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Aldeyra Therapeutics insiders are doubting the company, and they do own shares. 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. At Simply Wall St, we've found that Aldeyra Therapeutics has 2 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Aldeyra Therapeutics 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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