Yahoo Finance Trade Alert: The CEO, President & Director Of Aldeyra Therapeutics, Inc. (NASDAQ:ALDX), Todd Brady, Has Just Spent US$60k Buying 2.4% More Shares
Even if it's not a huge purchase, we think it was good to see that Todd Brady, the CEO, President & Director of Aldeyra Therapeutics, Inc. (NASDAQ:ALDX) recently shelled out US$60k to buy stock, at US$3.36 per share. However, it only increased their shares held by 2.4%, and it wasn't a huge purchase by absolute value, either.
See our latest analysis for Aldeyra Therapeutics
Aldeyra Therapeutics Insider Transactions Over The Last Year
In fact, the recent purchase by Todd Brady was the biggest purchase of Aldeyra Therapeutics shares made by an insider individual in the last twelve months, according to our records. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$3.87. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Aldeyra Therapeutics insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Aldeyra Therapeutics 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Aldeyra Therapeutics insiders have about 1.8% of the stock, worth approximately US$4.0m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Aldeyra Therapeutics Insiders?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Aldeyra Therapeutics insiders are reasonably well aligned, and optimistic for the future. 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. Every company has risks, and we've spotted 3 warning signs for Aldeyra Therapeutics (of which 1 is significant!) you should know about.
But note: Aldeyra Therapeutics 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, 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.
