Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) Insiders who bought stocks over the past year were handsomely rewarded last week. The stock rose 69%, leading to a $723 million increase in the company’s market capitalization. In other words, the original $830,000 acquisition is now worth $1.3 million.
While we don’t think shareholders should simply follow insider trades, we think it makes perfect sense to keep an eye on what insiders are doing.
Check out our latest analysis for Amylyx Pharmaceuticals
The last 12 months of insider trading at Amylyx Pharmaceuticals
In the past twelve months, the largest single purchase by an insider was when Independent Chairman of the Board George Milne purchased US$500,000 worth of stock at US$19.00 per share . We like to see buy, but this buy was made well below the current price of US$30.26. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.
While Amylyx Pharmaceuticals insiders have bought shares over the past year, they haven’t sold. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!
There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. High insider participation often makes company management more concerned with the interests of shareholders. Insiders of Amylyx Pharmaceuticals own approximately $210 million in stock (or 12% of the company). This type of significant insider ownership generally increases the chances that the company will be run in the best interests of all shareholders.
So what do Amylyx Pharmaceuticals insider trading indicate?
The fact that there have been no Amylyx Pharmaceuticals insider trading recently certainly doesn’t bother us. However, our analysis of transactions over the past year is encouraging. Judging by their trading and strong insider participation, Amylyx Pharmaceuticals insiders are happy with the company’s future. So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. To help you, we found 2 warning signs that you should take a look to get a better picture of Amylyx Pharmaceuticals.
But note: Amylyx Pharmaceuticals may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.
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