Yahoo Finance Athenex, Inc.'s (NASDAQ:ATNX) recent US$6.3m market cap decline means a loss of US$261k for insiders who bought this year
The recent price decline of 11% in Athenex, Inc.'s (NASDAQ:ATNX) stock may have disappointed insiders who bought US$315k worth of shares at an average price of US$2.57 in the past 12 months. 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$54k, which is not great.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Athenex
Athenex Insider Transactions Over The Last Year
The Independent Director Jinn Wu made the biggest insider purchase in the last 12 months. That single transaction was for US$161k worth of shares at a price of US$3.22 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.44). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Athenex insiders were buying shares, but not selling. They paid about US$2.57 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Athenex is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Athenex insiders own about US$5.7m worth of shares (which is 12% of the company). We do generally prefer see higher levels of insider ownership.
So What Do The Athenex Insider Transactions Indicate?
The fact that there have been no Athenex insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Athenex stock. While we like knowing 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. While conducting our analysis, we found that Athenex has 5 warning signs and it would be unwise to ignore these.
Of course Athenex 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, but not derivative transactions.
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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.
