Even if it's not a huge purchase, we think it was good to see that Jerome Durso, the Independent Chairman of Altimmune, Inc. (NASDAQ:ALT) recently shelled out US$52k to buy stock, at US$4.13 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.
In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Gregory Weaver bought US$52k worth of shares at a price of US$5.20 per share. That means that an insider was happy to buy shares at above the current price of US$3.86. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months Altimmune insiders were buying shares, but not selling. The average buy price was around US$4.46. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
See our latest analysis for Altimmune
Altimmune is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
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. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Altimmune insiders have about 0.7% of the stock, worth approximately US$2.8m. I generally like to see higher levels of ownership.
It's certainly positive to see the recent insider purchases. 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. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Altimmune stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Altimmune. In terms of investment risks, we've identified 2 warning signs with Altimmune and understanding them should be part of your investment process.
Of course Altimmune 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.