We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN), you may well want to know whether insiders have been buying or selling.

Do Insider Transactions Matter?

It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year'.

View our latest analysis for Eledon Pharmaceuticals

Eledon Pharmaceuticals Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Chief Financial Officer Paul Little for US$89k worth of shares, at about US$8.87 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$7.89). 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. 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 Eledon Pharmaceuticals insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Eledon Pharmaceuticals is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders at Eledon Pharmaceuticals Have Bought Stock Recently

It's good to see that Eledon Pharmaceuticals insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought US$113k worth of shares. This makes one think the business has some good points.

Insider Ownership of Eledon Pharmaceuticals

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From what we can see in our data, insiders own only about US$111k worth of Eledon Pharmaceuticals shares. We might be missing something but that seems like very low insider ownership.