CFO & Principal Accounting Officer Nick Pizzie Just Bought Shares In Axsome Therapeutics, Inc. (NASDAQ:AXSM)

Even if it's not a huge purchase, we think it was good to see that Nick Pizzie, the CFO & Principal Accounting Officer of Axsome Therapeutics, Inc. (NASDAQ:AXSM) recently shelled out US$54k to buy stock, at US$24.80 per share. However, we do note that it only increased their holding by 5.7%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Axsome Therapeutics

Axsome Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Director Mark Coleman bought US$374k worth of shares at a price of US$23.25 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$20.24). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

In the last twelve months Axsome Therapeutics insiders were buying shares, but not selling. They paid about US$19.93 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. 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 growing companies that insiders are buying.

Insider Ownership of Axsome Therapeutics

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Axsome Therapeutics insiders own 5.2% of the company, worth about US$36m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Axsome Therapeutics Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of Axsome Therapeutics we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Axsome Therapeutics, you should check out this free report on analyst forecasts for the company.

Of course Axsome Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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, but not derivative transactions.

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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.