Anyone interested in Alector, Inc. (NASDAQ:ALEC) should probably be aware that the Co-Founder, Arnon Rosenthal, recently divested US$121k worth of shares in the company, at an average price of US$4.80 each. However, the silver lining is that the sale only reduced their total holding by 0.5%, so we're hesitant to read anything much into it, on its own.

The Last 12 Months Of Insider Transactions At Alector

In fact, the recent sale by Co-Founder Arnon Rosenthal was not their only sale of Alector shares this year. They previously made an even bigger sale of -US$132k worth of shares at a price of US$5.56 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$4.36. So it may not tell us anything about how insiders feel about the current share price.

Alector insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Does Alector Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Alector insiders own 6.2% of the company, worth about US$26m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Alector Tell Us?

Insiders sold Alector shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alector. For example - Alector has 3 warning signs we think you should be aware of.

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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.

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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.