With stock up 25%, Insiders of Vaccinex, Inc. (NASDAQ:VCNX) must be wishing they had bought more last year
Vaccinex, Inc. (NASDAQ:VCNX) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 25% resulting in a US$15m addition to the company’s market value. Put another way, the original US$100k acquisition is now worth US$176k.
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.
View our latest analysis for Vaccinex
The Last 12 Months Of Insider Transactions At Vaccinex
In the last twelve months, the biggest single purchase by an insider was when Independent Lead Director Jacob Frieberg bought US$100k worth of shares at a price of US$1.11 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.95. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Vaccinex insiders have about 3.2% of the stock, worth approximately US$2.5m. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
What Might The Insider Transactions At Vaccinex Tell Us?
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. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Vaccinex insiders are expecting a bright future. 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 Vaccinex has 5 warning signs (3 don't sit too well with us!) that deserve your attention before going any further with your analysis.
But note: Vaccinex 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.
