Accolade, Inc. (NASDAQ:ACCD) Insiders who have bought shares in the past 12 months got rich rewards last week. The stock rose by 9.4% adding $76 million to the company’s market capitalization. As a result, their original $177,000 worth of stock purchase is now worth $219,000.
While insider transactions aren’t the most important thing when it comes to long-term investing, common sense forces you to pay attention to whether insiders are buying or selling stocks.
Earn Insider Transactions over the past year
Over the past year, we can see that the largest insider purchase was by Chairman and CEO Rajiv Singh for $177,000 in shares, at around $10.09 a share. We would like to see buying, but this purchase was made at a much lower price than the current price of $12.51. Because the shares were bought at a lower price, this specific purchase doesn’t tell us much about how insiders feel about the current stock price.
The chart below shows internal transactions (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!
Accolade isn’t the only stock insiders are buying. For those who like to find winning investments this is Free A growing list of companies with recent in-house purchases, could be just the ticket.
Accolade Insiders Bought Shares Recently
Over the past three months, we’ve seen far more insider buying than insider selling at Accolade. We can see that Chairman and CEO Rajiv Singh paid US$177,000 to purchase shares in the company. But President Robert Kavanaugh sold shares worth $2.0 thousand. Buying outweighs selling, indicating that insiders may believe the company will do well in the future.
Many investors like to check how much a company is owned by insiders. Usually, the greater the internal ownership, the more likely insiders will be motivated to build the company in the long run. Accolade insiders appear to own 5.2% of the company, valued at approximately $46 million. While this is a strong but not distinct level of internal ownership, it is sufficient to indicate some alignment between management and smaller shareholders.
So what do Accolade Insider transactions indicate?
The last purchase from the inside is heartening. We also take confidence from the long-term picture of internal transactions. But we don’t feel the same about the fact that the company is incurring losses. Insiders are likely to see value in Accolade stock, given these transactions (along with the company’s notable internal ownership). So these insider transactions can help us build a thesis about the stock, but it’s also useful to know the risks that this company faces. In terms of investment risk, We have identified 3 warning signs with Accolade And understanding them should be part of your investing process.
naturally Accolade may not be the best stock to buy. So you might like to see this Free A group of high quality companies.
For the purposes of this article, insiders are individuals who report their transactions to the relevant regulatory authority. We currently account for open market transactions and private dispositions, but not derivative transactions.
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