Had insiders known Accolade, Inc. (NASDAQ:ACCD) would hit US$964m they might have invested more last year

Accolade, Inc. (NASDAQ:ACCD) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 8.0%, resulting in a US$71m rise in the company's market capitalisation. Put another way, the original US$177k acquisition is now worth US$233k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Accolade

Accolade Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chairman of the Board & CEO Rajeev Singh bought US$177k worth of shares at a price of US$10.09 per share. We do like to see buying, but this purchase was made at well below the current price of US$13.25. 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.

In the last twelve months insiders purchased 17.57k shares for US$177k. But insiders sold 836.00 shares worth US$8.8k. In the last twelve months there was more buying than selling by Accolade insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Accolade is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Are Accolade Insiders Buying Or Selling?

In the last three months company CFO & Treasurer Stephen Barnes divested US$563 worth of stock. That is not a lot. The net selling is so small that it's hard to draw any conclusions from these recent transactions.

Insider Ownership Of Accolade

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Accolade insiders own about US$11m worth of shares. That equates to 1.1% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Accolade Insider Transactions Indicate?

We did not see any insider buying in the last three months, but we did see selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think Accolade insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Accolade.

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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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.