Alpha Teknova Insiders Placed Bullish Bets Worth US$1.76m

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Multiple insiders secured a larger position in Alpha Teknova, Inc. (NASDAQ:TKNO) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company’s prospects.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Alpha Teknova

The Last 12 Months Of Insider Transactions At Alpha Teknova

The Director J. Mackowski made the biggest insider purchase in the last 12 months. That single transaction was for US$1.5m worth of shares at a price of US$1.85 each. That means that an insider was happy to buy shares at above the current price of US$1.81. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Over the last year, we can see that insiders have bought 949.53k shares worth US$1.8m. But they sold 11.40k shares for US$43k. Overall, Alpha Teknova 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. Our data indicates that Alpha Teknova insiders own about US$9.2m worth of shares (which is 12% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Alpha Teknova Tell Us?

The fact that there have been no Alpha Teknova insider transactions recently certainly doesn’t bother us. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it’d be more encouraging if Alpha Teknova insiders bought more shares in the company. In addition to knowing about insider transactions going on, it’s beneficial to identify the risks facing Alpha Teknova. In terms of investment risks, we’ve identified 4 warning signs with Alpha Teknova and understanding them should be part of your investment process.

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 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.