Did Akouos, Inc. (NASDAQ:AKUS) Insiders Buy Up More Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Akouos, Inc. (NASDAQ:AKUS).

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Akouos

The Last 12 Months Of Insider Transactions At Akouos

Over the last year, we can see that the biggest insider purchase was by Independent Director Heather Preston for US$100k worth of shares, at about US$17.00 per share. That means that an insider was happy to buy shares at around the current price of US$19.12. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Akouos insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Heather Preston.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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

Does Akouos Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Akouos insiders own 1.3% of the company, worth about US$8.5m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Does This Data Suggest About Akouos Insiders?

The fact that there have been no Akouos insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Akouos insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Akouos. Be aware that Akouos is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

But note: Akouos may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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. 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.
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