Aldeyra Therapeutics Drops To US$2.10, Yet Insiders May Have Sold Too Early

Despite the fact that Aldeyra Therapeutics, Inc.'s (NASDAQ:ALDX) value has dropped 22% in the last week insiders who sold US$127k worth of stock in the past 12 months have had less success. The average selling price of US$4.74 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

We've discovered 2 warning signs about Aldeyra Therapeutics. View them for free.

The Last 12 Months Of Insider Transactions At Aldeyra Therapeutics

Over the last year, we can see that the biggest insider sale was by the Chief Development Officer, Stephen Machatha, for US$76k worth of shares, at about US$4.74 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$2.10. So it is hard to draw any strong conclusion from it.

In the last year Aldeyra Therapeutics insiders didn't buy any company stock. 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!

Check out our latest analysis for Aldeyra Therapeutics

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Aldeyra Therapeutics

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. Insiders own 3.1% of Aldeyra Therapeutics shares, worth about US$5.1m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Aldeyra Therapeutics Insider Transactions Indicate?

The fact that there have been no Aldeyra Therapeutics insider transactions recently certainly doesn't bother us. The insider transactions at Aldeyra Therapeutics are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. 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. You'd be interested to know, that we found 2 warning signs for Aldeyra Therapeutics and we suggest you have a look.

Of course Aldeyra Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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.