Elutia's US$3.2m Market Cap Fall Books Insider Losses

Insiders who acquired US$317k worth of Elutia Inc.'s (NASDAQ:ELUT) stock at an average price of US$3.95 in the past 12 months may be dismayed by the recent 14% price decline. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$101k, which is not great.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Elutia

Elutia Insider Transactions Over The Last Year

The insider Matthew Strobeck made the biggest insider purchase in the last 12 months. That single transaction was for US$171k worth of shares at a price of US$3.79 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.26). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Elutia insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Elutia is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Elutia

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Elutia insiders have about 3.5% of the stock, worth approximately US$709k. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Elutia Insiders?

The fact that there have been no Elutia insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Elutia insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Elutia. To help with this, we've discovered 6 warning signs (2 shouldn't be ignored!) that you ought to be aware of before buying any shares in Elutia.

But note: Elutia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.