Have Insiders Been Selling Allena Pharmaceuticals, Inc. (NASDAQ:ALNA) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Allena Pharmaceuticals, Inc. (NASDAQ:ALNA).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

See our latest analysis for Allena Pharmaceuticals

Allena Pharmaceuticals Insider Transactions Over The Last Year

The President, Louis Brenner, made the biggest insider sale in the last 12 months. That single transaction was for US$140k worth of shares at a price of US$1.36 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$1.23. So it is hard to draw any strong conclusion from it.

In the last year Allena Pharmaceuticals insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Allena Pharmaceuticals better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

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. Our data suggests Allena Pharmaceuticals insiders own 3.2% of the company, worth about US$2.2m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Allena Pharmaceuticals Insiders?

The fact that there have been no Allena Pharmaceuticals insider transactions recently certainly doesn't bother us. Our analysis of Allena Pharmaceuticals insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Allena Pharmaceuticals. Every company has risks, and we've spotted 6 warning signs for Allena Pharmaceuticals (of which 3 don't sit too well with us!) you should know about.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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