Have Alector Insiders Been Selling Stock?

We note that the Alector, Inc. (NASDAQ:ALEC) Co-Founder, Arnon Rosenthal, recently sold US$59k worth of stock for US$1.47 per share. On the bright side, that's just a small sale and only reduced their holding by 0.7%.

Check out our latest analysis for Alector

The Last 12 Months Of Insider Transactions At Alector

Over the last year, we can see that the biggest insider sale was by the Director & Member of Scientific Advisory Board, Richard Scheller, for US$228k worth of shares, at about US$5.16 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$1.44). So it may not tell us anything about how insiders feel about the current share price.

Alector insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Alector

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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 Alector insiders own 6.2% of the company, worth about US$8.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Alector Tell Us?

Insiders haven't bought Alector stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. When you consider that most companies have higher levels of insider ownership, we're a little wary. We'd certainly practice some caution before buying! 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. For example - Alector has 2 warning signs we think you should be aware of.

Of course Alector 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.