Potential Allogene Therapeutics, Inc. (NASDAQ:ALLO) shareholders may wish to note that the Co-Founder & Director, Joshua Kazam, recently bought US$189k worth of stock, paying US$12.60 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.2%.
Allogene Therapeutics Insider Transactions Over The Last Year
The Co-Founder, David Chang, made the biggest insider sale in the last 12 months. That single transaction was for US$791k worth of shares at a price of US$38.57 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$13.28. So it is hard to draw any strong conclusion from it.
In total, Allogene Therapeutics insiders sold more than they bought over the last year. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It's great to see that Allogene Therapeutics insiders own 8.4% of the company, worth about US$159m. 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 Allogene Therapeutics Tell Us?
It's certainly positive to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Allogene Therapeutics. At Simply Wall St, we found 2 warning signs for Allogene Therapeutics that deserve your attention before buying any shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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