It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Alpha Teknova, Inc.'s (NASDAQ:TKNO) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Alpha Teknova
The Last 12 Months Of Insider Transactions At Alpha Teknova
Over the last year, we can see that the biggest insider purchase was by Director Thomas Davis for US$181k worth of shares, at about US$19.95 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$8.09). Their view may have changed since then, but at least it shows they felt optimistic at the time. 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.
While Alpha Teknova insiders bought shares during the last year, they didn't sell. They paid about US$15.76 on average. 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Alpha Teknova Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Alpha Teknova. Chief Financial Officer Matthew Lowell spent US$94k on stock, and there wasn't any selling. That shows some optimism about the company's future.
Insider Ownership of Alpha Teknova
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 13% of Alpha Teknova shares, worth about US$29m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Alpha Teknova Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Alpha Teknova we think they are probably pretty confident of a bright 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. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Alpha Teknova.
Of course Alpha Teknova 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, 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.