Insiders who bought US$357.8k worth of Alexium International Group Limited (ASX:AJX) stock in the last year have seen some of their losses recouped as the stock gained 10.0% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$55k since the time of purchase.

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 Alexium International Group

The Last 12 Months Of Insider Transactions At Alexium International Group

Over the last year, we can see that the biggest insider purchase was by CEO, MD & Director William Blackburn for AU$156k worth of shares, at about AU$0.013 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.011). It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.

In the last twelve months Alexium International Group insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

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. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Alexium International Group insiders own 11% of the company, worth about AU$1.9m. We do generally prefer see higher levels of insider ownership.

So What Do The Alexium International Group Insider Transactions Indicate?

The fact that there have been no Alexium International Group insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Alexium International Group insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Alexium International Group. At Simply Wall St, we've found that Alexium International Group has 3 warning signs (2 are a bit concerning!) that deserve your attention before going any further with your analysis.

Of course Alexium International Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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 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.