Independent Director of Annexon Jung Choi Buys More Stock

Potential Annexon, Inc. (NASDAQ:ANNX) shareholders may wish to note that the Independent Director, Jung Choi, recently bought US$138k worth of stock, paying US$4.19 for each share. However, it only increased shareholding by a small percentage, and it wasn't a huge purchase by absolute value, either.

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The Last 12 Months Of Insider Transactions At Annexon

In fact, the recent purchase by Jung Choi was the biggest purchase of Annexon shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$4.49 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Annexon share holders is that an insider was buying at near the current price. Jung Choi was the only individual insider to buy shares in the last twelve months.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Annexon

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 1.0% of Annexon shares, worth about US$6.8m, according to our data. We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Annexon Insiders?

It's certainly positive to see the recent insider purchase. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Annexon insiders are reasonably well aligned, and optimistic for the future. 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. When we did our research, we found 3 warning signs for Annexon (2 are significant!) that we believe deserve your full attention.

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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.