Have Amylyx Pharmaceuticals Insiders Been Selling Stock?
Some Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shareholders may be a little concerned to see that the Co-Founder, Joshua Cohen, recently sold a substantial US$950k worth of stock at a price of US$32.16 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 0.9%.
Amylyx Pharmaceuticals Insider Transactions Over The Last Year
In fact, the recent sale by Joshua Cohen was the biggest sale of Amylyx Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$33.15). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 0.9% of Joshua Cohen's holding.
Over the last year we saw more insider selling of Amylyx Pharmaceuticals shares, than buying. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Amylyx Pharmaceuticals
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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Amylyx Pharmaceuticals insiders own about US$260m worth of shares (which is 6.2% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Amylyx Pharmaceuticals Tell Us?
Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. For instance, we've identified 4 warning signs for Amylyx Pharmaceuticals (2 can't be ignored) you should be aware of.
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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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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.