Market cap

As the market cap of Vaccinex, Inc. (NASDAQ:VCNX) increased by $6.0 million, insiders who bought in the last year may consider buying more

Vaccinex, Inc. (NASDAQ:VCNX) Insiders who bought stocks in the past 12 months were richly rewarded last week. The stock rose 13%, resulting in a US$6.0 million increase in the company’s market value. In other words, the initial acquisition of US$126,000 is now worth US$130,000.

While we would never suggest that investors base their decisions solely on what a company’s directors have done, we think it makes perfect sense to keep tabs on what insiders are doing.

Discover our latest analysis for Vaccinex

The last 12 months of insider trading at Vaccinex

Independent lead director Jacob Frieberg made the biggest insider buy in the past 12 months. This single transaction was for US$100,000 of shares at a price of US$1.11 each. So clearly an insider wanted to buy, roughly at the current price, which is US$1.18. Although their perspective has changed since the purchase, it at least suggests they have confidence in the company’s future. We always like to see insider buys, but it’s worth noting if those buys were made well below the current stock price, as the discount to value may have diminished as the price rose. Fortunately, Vaccinex insiders decided to buy shares at prices close to current prices.

Over the past twelve months, Vaccinex insiders have bought shares, but not sold. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!

NasdaqCM: VCNX Insider Trading Volume for July 9, 2022

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Insider ownership

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. We generally like to see fairly high levels of insider ownership. Based on our data, Vaccinex insiders own about 3.1% of the stock, worth about $1.6 million. We note, however, that insiders may have an indirect interest through a private company or other corporate structure. We prefer to see high levels of insider ownership.

What could insider trading at Vaccinex tell us?

The fact that there have been no Vaccinex insider trades recently certainly doesn’t bother us. However, our analysis of transactions over the past year is encouraging. We would like to see larger individual holdings. However, we see nothing to suggest that Vaccinex insiders doubt the company. In addition to knowing what insider trading is going on, it is useful to identify the risks that Vaccinex faces. For example, Vaccinex has 4 warning signs (and 2 that can’t be ignored) that we think you should know about.

If you’d rather check out another company – one with potentially superior finances – then don’t miss this free list of attractive companies, which have a high return on equity and low debt.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.