volume-of-insider-trading

As Accolade, Inc. (NASDAQ:ACCD) Hits $891 Million Market Cap, Insiders May Be Dismayed Not to Buy Larger Quantities

Accolade, Inc. (NASDAQ:ACCD) insiders who bought stocks in the past 12 months were richly rewarded last week. The stock soared 9.4%, resulting in a US$76 million increase in the company’s market value. As a result, their original stock purchase worth US$177,000 is now worth US$219,000.

While insider trading isn’t the most important thing when it comes to long-term investing, logic dictates that you should pay attention to whether insiders are buying or selling stocks.

Accolade insider trades over the past year

Over the past year, we can see that the largest insider buy was made by Chairman of the Board and CEO Rajeev Singh for US$177,000 worth of shares, at around US$10.09 per stock. We like to see buy, but this buy was made well below the current price of US$12.51. Because the stock was purchased at a lower price, this particular purchase tells us little about what insiders think of the stock’s current price.

The chart below shows insider trading (by companies and individuals) over the past year. If you want to know exactly who sold, how much and when, just click on the chart below!

NasdaqGS: ACCD Insider Trading Volume, September 18, 2022

Accolade isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Accolade Insiders Recently Bought Stock

Over the past three months, we have seen significantly more insider buying than insider selling at Accolade. We can see that Chairman of the Board and CEO, Rajeev Singh, paid US$177,000 for shares in the company. But Chairman Robert Cavanaugh sold shares worth US$2,000. Buying outweighs selling, suggesting that insiders may believe the company will do well in the future.

Insider ownership

Many investors like to check how much a company is owned by insiders. Usually, the higher the insider ownership, the more likely insiders will be incentivized to build the company for the long term. Accolade insiders appear to own 5.2% of the company, worth around $46 million. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

So what do Accolade insider trades indicate?

The recent insider buying is encouraging. We also rely on the longer-term picture of insider trading. But we don’t feel the same way about the company making losses. Insiders likely see value in Accolade stock, given these transactions (as well as notable insider ownership of the company). So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. In terms of investment risks, we have identified 3 warning signs with Accolade and understanding them should be part of your investment process.

Sure Accolade may not be the best stock to buy. So you might want to see this free set of high quality companies.

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.

Feedback on this article? Concerned about content? Get in touch with us directly. You can also email the editorial team (at) Simplywallst.com.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

#Accolade #NASDAQACCD #Hits #Million #Market #Cap #Insiders #Dismayed #Buy #Larger #Quantities

Leave a Comment

Your email address will not be published.