Annexon Insiders Land Bargain With Gains Of US$782k

Insiders who purchased Annexon, Inc. (NASDAQ:ANNX) shares in the past 12 months are unlikely to be deeply impacted by the stock's 18% decline over the past week. Even after accounting for the recent loss, the US$1.01m worth of stock purchased by them is now worth US$1.79m or in other words, their investment continues to give good returns.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Annexon

The Last 12 Months Of Insider Transactions At Annexon

Over the last year, we can see that the biggest insider purchase was by Independent Director Muneer Satter for US$1.0m worth of shares, at about US$2.88 per share. We do like to see buying, but this purchase was made at well below the current price of US$5.12. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

Annexon is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Annexon Insiders Are Selling The Stock

Over the last three months, we've seen significant insider selling at Annexon. Specifically, insiders ditched US$99k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Insider Ownership Of Annexon

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Annexon insiders own about US$6.4m worth of shares (which is 1.2% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Annexon Tell Us?

Insiders haven't bought Annexon stock in the last three months, but there was some selling. But we take heart from prior transactions. Still, insiders don't own a great deal of the stock. So we can't be sure that insiders are optimistic. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Annexon has 5 warning signs (and 2 which make us uncomfortable) we think you should know about.

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 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.