The recent 11% drop in Alpine Immune Sciences, Inc.'s (NASDAQ:ALPN) stock could come as a blow to insiders who purchased US$268k worth of stock at an average buy price of US$9.98 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$203k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Alpine Immune Sciences Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, James Rickey, sold US$237k worth of shares at a price of US$13.92 per share. 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$7.55. So it may not shed much light on insider confidence at current levels. James Rickey was the only individual insider to sell shares in the last twelve months.
Over the last year, we can see that insiders have bought 26.90k shares worth US$268k. But insiders sold 17.01k shares worth US$237k. Overall, Alpine Immune Sciences insiders were net buyers during 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!
Alpine Immune Sciences is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Based on our data, Alpine Immune Sciences insiders have about 1.5% of the stock, worth approximately US$3.4m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Alpine Immune Sciences Tell Us?
It doesn't really mean much that no insider has traded Alpine Immune Sciences shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Alpine Immune Sciences insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 4 warning signs for Alpine Immune Sciences (1 is a bit concerning!) and we strongly recommend you look at them before investing.
But note: Alpine Immune Sciences 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, but not derivative transactions.
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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.