Positive Signs As Multiple Insiders Buy Alpha Teknova Stock

Simply Wall St.
01-30

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Alpha Teknova, Inc.'s (NASDAQ:TKNO) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

See our latest analysis for Alpha Teknova

The Last 12 Months Of Insider Transactions At Alpha Teknova

Over the last year, we can see that the biggest insider purchase was by President Stephen Gunstream for US$100k worth of shares, at about US$1.24 per share. We do like to see buying, but this purchase was made at well below the current price of US$9.17. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Alpha Teknova insiders may have bought shares in the last year, but they didn't sell any. 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!

NasdaqGM:TKNO Insider Trading Volume January 30th 2025

Alpha Teknova is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Alpha Teknova insiders own about US$67m worth of shares. That equates to 13% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Alpha Teknova Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Alpha Teknova shares in the last quarter. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Alpha Teknova insiders are doubting the company, and they do own shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 3 warning signs for Alpha Teknova (1 doesn't sit too well with us!) and we strongly recommend you look at them before investing.

Of course Alpha Teknova 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

免責聲明:投資有風險,本文並非投資建議,以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請,作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考,不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證,投資者應自行研究並在投資前尋求專業建議。

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