Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Alpha Cognition Inc. (NASDAQ:ACOG), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Alpha Cognition
In the last twelve months, the biggest single purchase by an insider was when Independent Chairman of the Board Robert Wills bought US$96k worth of shares at a price of US$9.62 per share. That means that even when the share price was higher than US$9.19 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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 Alpha Cognition insiders were buying shares, but not selling. They paid about US$8.62 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for Alpha Cognition
Alpha Cognition is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Alpha Cognition Have Bought Stock Recently
It's good to see that Alpha Cognition insiders have made notable investments in the company's shares. Specifically, Independent Chairman of the Board Robert Wills bought US$96k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Alpha Cognition Boast High 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Alpha Cognition insiders own 5.2% of the company, worth about US$10m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Alpha Cognition Tell Us?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Given that insiders also own a fair bit of Alpha Cognition we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Alpha Cognition, you should check out this free report on analyst forecasts for the company.
Of course Alpha Cognition 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.
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