Insiders were net buyers of Annexon, Inc.'s (NASDAQ:ANNX ) stock during the past year. That is, insiders bought more stock than they sold.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Annexon Insider Transactions Over The Last Year

The Independent Director Muneer Satter made the biggest insider purchase in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$2.88 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$6.05. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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

Annexon is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Annexon Insiders Are Selling The Stock

The last three months saw significant insider selling at Annexon. In total, insiders dumped US$99k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Does Annexon Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. 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 1.2% of Annexon shares, worth about US$6.9m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Annexon Insider Transactions Indicate?

Insiders sold Annexon shares recently, but they didn't buy any. But we take heart from prior transactions. Still, insiders don't own a great deal of the stock. So overall it's hard to argue insiders are bullish. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Annexon has 5 warning signs (2 don't sit too well with us!) that deserve your attention before going any further with your analysis.

Of course Annexon may not be the best stock to buy. So you may wish to see this free collection of high quality 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.