Even if it's not a huge purchase, we think it was good to see that David Epstein, the Chairman of Axcella Health Inc. (NASDAQ:AXLA) recently shelled out US$54k to buy stock, at US$3.57 per share. That purchase might not be huge but it did increase their holding by 39%.
The Last 12 Months Of Insider Transactions At Axcella Health
In fact, the recent purchase by Chairman David Epstein was not their only acquisition of Axcella Health shares this year. They previously made an even bigger purchase of US$139k worth of shares at a price of US$9.57 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$4.62). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was David Epstein.
David Epstein bought a total of 53298 shares over the year at an average price of US$7.34. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Axcella Health
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Axcella Health insiders own about US$9.9m worth of shares (which is 9.1% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Axcella Health Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. 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 Axcella Health insiders are expecting a bright future. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Axcella Health.
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.
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