We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Alimera Sciences, Inc. (NASDAQ:ALIM).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.
View our latest analysis for Alimera Sciences
The Last 12 Months Of Insider Transactions At Alimera Sciences
Over the last year, we can see that the biggest insider sale was by the insider, Ronald Chez, for US$819k worth of shares, at about US$7.20 per share. So we know that an insider sold shares at around the present share price of US$6.07. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Notably Ronald Chez was also the biggest buyer, having purchased US$846k worth of shares.
Over the last year, we can see that insiders have bought 926.11k shares worth US$846k. But insiders sold 125.45k shares worth US$853k. All up, insiders sold more shares in Alimera Sciences than they bought, over the last year. They sold for an average price of about US$6.80. We don't gain confidence from insider selling below the recent share price. Since insiders sell for many reasons, we wouldn't put too much weight on it. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Alimera Sciences Have Sold Stock Recently
Over the last three months, we've seen significant insider selling at Alimera Sciences. In total, insiders sold US$853k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.