We wouldn't blame Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) shareholders if they were a little worried about the fact that Todd Brady, the CEO, President & Director recently netted about US$581k selling shares at an average price of US$3.17. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.
Aldeyra Therapeutics Insider Transactions Over The Last Year
In fact, the recent sale by Todd Brady was the biggest sale of Aldeyra Therapeutics shares made by an insider individual in the last twelve months, according to our records. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$2.77). So it is hard to draw any strong conclusion from it.
Insiders in Aldeyra Therapeutics didn't buy any shares in the last year. 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!
I will like Aldeyra Therapeutics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Aldeyra Therapeutics Boast High Insider Ownership?
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Aldeyra Therapeutics insiders have about 2.4% of the stock, worth approximately US$4.1m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Aldeyra Therapeutics Tell Us?
Insiders sold Aldeyra Therapeutics shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example, Aldeyra Therapeutics has 3 warning signs (and 1 which is concerning) we think you should know about.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.