Don't Ignore The Insider Selling In Amylyx Pharmaceuticals

Investors may wish to note that the Co-Founder of Amylyx Pharmaceuticals, Inc., Joshua Cohen, recently netted US$74k from selling stock, receiving an average price of US$3.47. However we note that the sale only shrunk their holding by 0.7%.

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Amylyx Pharmaceuticals Insider Transactions Over The Last Year

The Independent Chairman of the Board George Milne made the biggest insider purchase in the last 12 months. That single transaction was for US$220k worth of shares at a price of US$2.20 each. Even though the purchase was made at a significantly lower price than the recent price (US$3.43), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 205.00k shares worth US$474k. But insiders sold 195.54k shares worth US$678k. In total, Amylyx Pharmaceuticals insiders sold more than they bought over the last year. 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!

View our latest analysis for Amylyx Pharmaceuticals

I will like Amylyx Pharmaceuticals 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.

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. It appears that Amylyx Pharmaceuticals insiders own 7.9% of the company, worth about US$25m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Amylyx Pharmaceuticals Insider Transactions Indicate?

The stark truth for Amylyx Pharmaceuticals is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 4 warning signs for Amylyx Pharmaceuticals you should be aware of, and 1 of them is a bit concerning.

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.