Allogene Therapeutics Falls To US$1.51, But Insiders Sold At Lower Price

Despite the fact that Allogene Therapeutics, Inc.'s (NASDAQ:ALLO) value has dropped 16% in the last week insiders who sold US$267k worth of stock in the past 12 months have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$1.82 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Allogene Therapeutics

The Last 12 Months Of Insider Transactions At Allogene Therapeutics

Notably, that recent sale by David Chang is the biggest insider sale of Allogene Therapeutics shares that we've seen in the last year. 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$1.51. So it may not shed much light on insider confidence at current levels.

Allogene Therapeutics 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 like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Allogene Therapeutics Insiders Are Selling The Stock

The last three months saw significant insider selling at Allogene Therapeutics. Specifically, insiders ditched US$241k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 9.0% of Allogene Therapeutics shares, worth about US$30m. 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 Allogene Therapeutics Insider Transactions Indicate?

Insiders haven't bought Allogene Therapeutics stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Allogene Therapeutics. To that end, you should learn about the 4 warning signs we've spotted with Allogene Therapeutics (including 1 which is potentially serious).

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 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.