Some Amylyx Pharmaceuticals, Inc. (NASDAQ:AMLX) shareholders may be a little concerned to see that the Chief Legal Officer & General Counsel, Gina Mazzariello, recently sold a substantial US$539k worth of stock at a price of US$17.96 per share. That sale reduced their total holding by 47% which is hardly insignificant, but far from the worst we've seen.

Amylyx Pharmaceuticals Insider Transactions Over The Last Year

Notably, that recent sale by Gina Mazzariello is the biggest insider sale of Amylyx Pharmaceuticals shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of US$18.20. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In total, Amylyx Pharmaceuticals insiders sold more than they bought over 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!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Amylyx Pharmaceuticals insiders own 6.7% of the company, worth about US$130m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Amylyx Pharmaceuticals Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Amylyx Pharmaceuticals stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. 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. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Amylyx Pharmaceuticals.

But note: Amylyx Pharmaceuticals may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.