ALX Oncology Holdings Drops To US$1.68, Yet Insiders May Have Sold Too Early

ALX Oncology Holdings Inc.'s (NASDAQ:ALXO) stock price has dropped 15% in the previous week, but insiders who sold US$355k in stock over the past year have had less luck. The average selling price of US$9.42 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for ALX Oncology Holdings

ALX Oncology Holdings Insider Transactions Over The Last Year

The Founder, Jaume Pons, made the biggest insider sale in the last 12 months. That single transaction was for US$108k worth of shares at a price of US$15.04 each. 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$1.68. So it may not shed much light on insider confidence at current levels.

In the last twelve months insiders purchased 16.40k shares for US$152k. But insiders sold 37.64k shares worth US$355k. Over the last year we saw more insider selling of ALX Oncology Holdings shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

I will like ALX Oncology Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Are ALX Oncology Holdings Insiders Buying Or Selling?

The last three months saw some ALX Oncology Holdings insider selling. Insiders divested only US$10.0k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Does ALX Oncology Holdings Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Our data suggests ALX Oncology Holdings insiders own 2.1% of the company, worth about US$1.8m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About ALX Oncology Holdings Insiders?

Our data shows a little more insider selling, but no insider buying, in the last three months. However, the sales are not big enough to concern us at all. Recent sales exacerbate our caution arising from analysis of ALX Oncology Holdings insider transactions. And usually insiders own more stock in the company, according to our data. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that ALX Oncology Holdings has 5 warning signs (2 can't be ignored!) that deserve your attention before going any further with your analysis.

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.