Aldeyra Therapeutics Insiders Who Sold Avert US$58m Market Cap Dip

Insiders at Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) sold US$852k worth of stock at an average price of US$3.36 a share over the past year, making the most of their investment. The company's market worth decreased by US$58m over the past week after the stock price dropped 18%, although insiders were able to minimize their losses

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.

View our latest analysis for Aldeyra Therapeutics

The Last 12 Months Of Insider Transactions At Aldeyra Therapeutics

The CEO, President & Director, Todd Brady, made the biggest insider sale in the last 12 months. That single transaction was for US$581k worth of shares at a price of US$3.27 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$4.41. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 14% of Todd Brady's holding.

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

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

Does Aldeyra Therapeutics Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Aldeyra Therapeutics insiders own 2.6% of the company, worth about US$7.3m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Aldeyra Therapeutics Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Aldeyra Therapeutics insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. While conducting our analysis, we found that Aldeyra Therapeutics has 1 warning sign and it would be unwise to ignore it.

But note: Aldeyra Therapeutics 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 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.