Insider Spends US$100k Buying More Shares In Annexon
Even if it's not a huge purchase, we think it was good to see that Douglas Love, the CEO, President & Director of Annexon, Inc. (NASDAQ:ANNX) recently shelled out US$100k to buy stock, at US$3.83 per share. Although the purchase is not a big one, increasing their shareholding by only 7.2%, it can be interpreted as a good sign.
Annexon Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Jung Choi bought US$138k worth of shares at a price of US$4.19 per share. That means that an insider was happy to buy shares at above the current price of US$3.64. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months insiders purchased 59.07k shares for US$238k. On the other hand they divested 59.70k shares, for US$313k. All up, insiders sold more shares in Annexon than they bought, over the last year. 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!
See our latest analysis for Annexon
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insider Ownership Of Annexon
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.9% of Annexon shares, worth about US$6.2m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
So What Does This Data Suggest About Annexon Insiders?
The recent insider purchase is heartening. But we can't say the same for the transactions over the last 12 months. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Annexon. Case in point: We've spotted 2 warning signs for Annexon you should be aware of.
Of course Annexon may not be the best stock to buy. So you may wish to see this free collection of high quality 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 of direct interests only, but not derivative transactions or indirect interests.
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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.