Yahoo Finance David Wehner Is The Independent Director of Alector, Inc. (NASDAQ:ALEC) And They Just Spent US$500k On Shares
Investors who take an interest in Alector, Inc. (NASDAQ:ALEC) should definitely note that the Independent Director, David Wehner, recently paid US$25.00 per share to buy US$500k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 81%, potentially signalling some real optimism.
View our latest analysis for Alector
The Last 12 Months Of Insider Transactions At Alector
In fact, the recent purchase by David Wehner was the biggest purchase of Alector shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$30.18. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Alector insider decided to buy shares at close to current prices. David Wehner was the only individual insider to buy shares in the last twelve months.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
Alector is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Alector
For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Alector insiders own 13% of the company, worth about US$310m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Alector Insider Transactions Indicate?
It is good to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Alector insiders are well aligned, and quite possibly think the share price is too low. Nice! Of course, the future is what matters most. So if you are interested in Alector, you should check out this free report on analyst forecasts for the company.
Of course Alector 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.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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