Arnon Rosenthal, Chief Executive Officer at Alector (NASDAQ:ALEC), made a large insider sell on September 23, according to a new SEC filing.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Thursday showed that Rosenthal sold 109,625 shares of Alector at prices ranging from $25.10 to $26.10. The total transaction amounted to $2,774,755.
Rosenthal still owns a total of 3,015,375 shares of Alector worth, $72,218,231.
Alector shares are trading down 1.0% at $23.95 at the time of this writing on Friday morning.
The Importance of Insider Transactions
Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.
In legal terms, an "insider" refers to any shareholder who owns at least 10% of a company. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.
When a company insider makes a new purchase, that is an indication that they expect the stock to rise.
Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.
Transaction Codes To Focus On
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