Multiple insiders bought Alpha Teknova, Inc. (NASDAQ:TKNO) stock earlier this year, a positive sign for shareholders
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Alpha Teknova, Inc.'s (NASDAQ:TKNO) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Alpha Teknova
The Last 12 Months Of Insider Transactions At Alpha Teknova
In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Matthew Lowell bought US$94k worth of shares at a price of US$9.45 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$6.25). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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.
Over the last year, we can see that insiders have bought 55.25k shares worth US$327k. On the other hand they divested 2.05k shares, for US$11k. Overall, Alpha Teknova insiders were net buyers during the last year. Their average price was about US$5.92. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
Alpha Teknova 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 Alpha Teknova Have Bought Stock Recently
There was some insider buying at Alpha Teknova over the last quarter. They bought US$45k worth in that time. But Chief People Officer Lisa Hood McCann sold US$11k worth. It is good to see that insiders have been buying, but they did not buy very many shares, in the scheme of things.
Insider Ownership Of Alpha Teknova
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Alpha Teknova insiders own 13% of the company, worth about US$23m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Alpha Teknova Insider Transactions Indicate?
Our data shows a little insider buying, but no selling, in the last three months. The net investment is not enough to encourage us much. On a brighter note, the transactions over the last year are encouraging. Insiders do have a stake in Alpha Teknova and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alpha Teknova. To that end, you should learn about the 3 warning signs we've spotted with Alpha Teknova (including 1 which shouldn't be ignored).
But note: Alpha Teknova 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, 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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