We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Alpine Immune Sciences, Inc. (NASDAQ:ALPN), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a 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. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
The Last 12 Months Of Insider Transactions At Alpine Immune Sciences
In the last twelve months, the biggest single purchase by an insider was when Patrick Heron bought US$2.0m worth of shares at a price of US$5.37 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.75. 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.
You can see the insider transactions (by 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are 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. Our information indicates that Alpine Immune Sciences insiders own about US$670k worth of shares. This level of insider ownership is notably low, and not very encouraging.
So What Do The Alpine Immune Sciences Insider Transactions Indicate?
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. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Alpine Immune Sciences may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.