Have Amylyx Pharmaceuticals Insiders Been Selling Stock?

Anyone interested in Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) should probably be aware that the Co-Founder, Justin Klee, recently divested US$431k worth of shares in the company, at an average price of US$14.38 each. On the bright side, that sale was only 1.0% of their holding, so we doubt it's very meaningful, on its own.

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The Last 12 Months Of Insider Transactions At Amylyx Pharmaceuticals

Notably, that recent sale by Justin Klee is the biggest insider sale of Amylyx Pharmaceuticals shares that we've seen in the last year. 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$13.42. So it may not shed much light on insider confidence at current levels.

In total, Amylyx Pharmaceuticals insiders sold more than they bought over the last year. 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!

View our latest analysis for Amylyx Pharmaceuticals

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Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 6.8% of Amylyx Pharmaceuticals shares, worth about US$97m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Amylyx Pharmaceuticals Insiders?

Insiders haven't bought Amylyx Pharmaceuticals stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Amylyx Pharmaceuticals has 4 warning signs (2 are a bit unpleasant!) that deserve your attention before going any further with your analysis.

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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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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.