Insider Buys Additional US$58k In ALX Oncology Holdings Stock

Explore ALX Oncology Holdings's Fair Values from the Community and select yours

Even if it's not a huge purchase, we think it was good to see that Harish Shantharam, the Chief Financial Officer of ALX Oncology Holdings Inc. (NASDAQ:ALXO) recently shelled out US$58k to buy stock, at US$0.78 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.

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ALX Oncology Holdings Insider Transactions Over The Last Year

Notably, that recent purchase by Harish Shantharam is the biggest insider purchase of ALX Oncology Holdings shares that we've seen in the last year. That implies that an insider found the current price of US$0.83 per share to be enticing. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the ALX Oncology Holdings insiders decided to buy shares at close to current prices.

Happily, we note that in the last year insiders paid US$105k for 105.00k shares. On the other hand they divested 25.01k shares, for US$31k. In total, ALX Oncology Holdings insiders bought more than they sold over the last year. The average buy price was around US$1.00. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for ALX Oncology Holdings

ALX Oncology Holdings is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does ALX Oncology Holdings Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, ALX Oncology Holdings insiders have about 2.5% of the stock, worth approximately US$1.1m. We consider this fairly low insider ownership.

So What Do The ALX Oncology Holdings Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that ALX Oncology Holdings insiders are expecting a bright 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. Our analysis shows 5 warning signs for ALX Oncology Holdings (2 are a bit unpleasant!) and we strongly recommend you look at them before investing.

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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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