Elutia Inc. (NASDAQ:ELUT) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 12% decline in the stock price. After taking the recent loss into consideration, the US$236.7k worth of stock they bought is now worth US$311.4k, indicating that their investment yielded a positive return.

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.

Elutia Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Independent Chairman & Lead Independent Director Kevin Rakin bought US$74k worth of shares at a price of US$1.06 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.99). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

In the last twelve months Elutia insiders were buying shares, but not selling. Their average price was about US$0.75. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price. The chart below shows insider transactions (by companies and individuals) over the last year. 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. We usually like to see fairly high levels of insider ownership. Our data suggests Elutia insiders own 3.8% of the company, worth about US$1.8m. I generally like to see higher levels of ownership.

So What Do The Elutia Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Elutia shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Elutia stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

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.

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.