Alexium International Group Gains 25%, Insider Trades Reap Benefit

Alexium International Group Limited (ASX:AJX) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 25% resulting in a AU$4.7m addition to the company’s market value. Put another way, the original US$357.8k acquisition is now worth US$412.8k.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Alexium International Group

Alexium International Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by CEO, MD & Director William Blackburn for AU$156k worth of shares, at about AU$0.013 per share. Even though the purchase was made at a significantly lower price than the recent price (AU$0.015), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

While Alexium International Group insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Alexium International Group is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Alexium International Group Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that Alexium International Group insiders own 11% of the company, worth about AU$2.6m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Alexium International Group Tell Us?

It doesn't really mean much that no insider has traded Alexium International Group shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if Alexium International Group insiders bought more shares in the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To that end, you should learn about the 3 warning signs we've spotted with Alexium International Group (including 2 which are potentially serious).

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.