Alumis Reaches US$465m Market Cap Benefiting Insider Stock Buying

Insiders who bought Alumis Inc. (NASDAQ:ALMS) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$240m as a result of the stock's 78% gain over the same period. Put another way, the original US$230.3k acquisition is now worth US$342.2k.

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.

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Alumis Insider Transactions Over The Last Year

Notably, that recent purchase by Alan Colowick is the biggest insider purchase of Alumis shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$10.05), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

In the last twelve months Alumis insiders were buying shares, but not selling. 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!

See our latest analysis for Alumis

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insiders At Alumis Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Alumis. Not only was there no selling that we can see, but they collectively bought US$230k worth of shares. That shows some optimism about the company's future.

Does Alumis Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Alumis insiders own 1.1% of the company, worth about US$5.0m. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Alumis Insider Transactions Indicate?

It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Alumis insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Alumis is showing 4 warning signs in our investment analysis , and 3 of those make us uncomfortable...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.