David Mott Bought 19% More Shares In Ardelyx

Ardelyx, Inc. (NASDAQ:ARDX) shareholders (or potential shareholders) will be happy to see that the Independent Chairman of the Board, David Mott, recently bought a whopping US$1.6m worth of stock, at a price of US$4.22. Not only is that a big swing, but it increased their holding size by 19%, which is definitely great to see.

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The Last 12 Months Of Insider Transactions At Ardelyx

Notably, that recent purchase by David Mott is the biggest insider purchase of Ardelyx shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.64). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was David Mott.

David Mott purchased 1.09m shares over the year. The average price per share was US$4.59. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

View our latest analysis for Ardelyx

Ardelyx 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 Ardelyx 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. Ardelyx insiders own about US$25m worth of shares. That equates to 2.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Ardelyx Insider Transactions Indicate?

It is good 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. Given that insiders also own a fair bit of Ardelyx we think they are probably pretty confident of a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.

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.