Yahoo Finance With stock up 14%, Insiders of Accolade, Inc. (NASDAQ:ACCD) must be wishing they had bought more last year
Accolade, Inc. (NASDAQ:ACCD) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 14% resulting in a US$99m addition to the company’s market value. As a result, their original purchase of US$177k worth of stock is now worth US$195k.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Accolade
The Last 12 Months Of Insider Transactions At Accolade
The Chairman of the Board & CEO Rajeev Singh made the biggest insider purchase in the last 12 months. That single transaction was for US$177k worth of shares at a price of US$10.09 each. That implies that an insider found the current price of US$11.08 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Accolade share holders is that insiders were buying at near the current price. We note that Rajeev Singh was both the biggest buyer and the biggest seller.
In the last twelve months insiders purchased 17.57k shares for US$177k. But insiders sold 836.00 shares worth US$8.8k. Overall, Accolade insiders were net buyers during the last year. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Have Accolade Insiders Traded Recently?
In the last three months company insiders divested US$3.0k worth of stock. That is not a lot. Looking at the net result, we don't think this recent trading sheds much light on how insiders, as a group, are feeling about the company's prospects.
Does Accolade 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 1.5% of Accolade shares, worth about US$12m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Accolade 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. However, our analysis of transactions over the last year is heartening. Insiders own shares in Accolade and we see no evidence to suggest they are worried about the future. 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. While conducting our analysis, we found that Accolade has 3 warning signs and it would be unwise to ignore them.
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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