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Investors who take an interest in Annexon, Inc. (NASDAQ:ANNX) should definitely note that the CEO, President & Director, Douglas Love, recently paid US$2.45 per share to buy US$147k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 59%, potentially signalling some real optimism.
See our latest analysis for Annexon
Annexon Insider Transactions Over The Last Year
Notably, that recent purchase by Douglas Love is the biggest insider purchase of Annexon shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$2.73), we still think insider buying is a positive. 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.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insider Ownership
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, Annexon insiders have about 2.5% of the stock, worth approximately US$2.6m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Annexon Insiders?
It's certainly positive to see the recent insider purchase. 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 Annexon insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 4 warning signs for Annexon (2 are a bit unpleasant!) that we believe deserve your full attention.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.