Insider Returns Down To US$122k As ALX Oncology Holdings' Stock Dips 15%

ALX Oncology Holdings Inc. (NASDAQ:ALXO) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 15% decline in the stock price. After accounting for the recent loss, the US$157.8k worth of shares they purchased is now worth US$279.3k, suggesting a good return on their investment.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

The Last 12 Months Of Insider Transactions At ALX Oncology Holdings

Over the last year, we can see that the biggest insider purchase was by CEO & Director Jason Lettmann for US$99k worth of shares, at about US$1.08 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.67. 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.

Happily, we note that in the last year insiders paid US$158k for 167.23k shares. On the other hand they divested 24.24k shares, for US$38k. In total, ALX Oncology Holdings insiders bought more than they sold over the last year. Their average price was about US$0.94. To my mind it is good that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for ALX Oncology Holdings

ALX Oncology Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At ALX Oncology Holdings Have Sold Stock Recently

Over the last three months, we've seen a bit of insider selling at ALX Oncology Holdings. Insiders divested only US$29k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Does ALX Oncology Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$2.9m worth of ALX Oncology Holdings stock, about 1.2% of the company. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At ALX Oncology Holdings Tell Us?

While there has not been any insider buying in the last three months, there has been selling. But given the selling was modest, we're not worried. But insiders have shown more of an appetite for the stock, over the last year. The transactions are fine but it'd be more encouraging if ALX Oncology Holdings insiders bought more shares in the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For instance, we've identified 4 warning signs for ALX Oncology Holdings (3 are a bit concerning) you should be aware of.

But note: ALX Oncology Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.