Don't Ignore The Fact That This Insider Just Sold Some Shares In Adverum Biotechnologies, Inc. (NASDAQ:ADVM)

By
Simply Wall St
Published
February 13, 2021
NasdaqGM:ADVM

We'd be surprised if Adverum Biotechnologies, Inc. (NASDAQ:ADVM) shareholders haven't noticed that the President, Leone Patterson, recently sold US$176k worth of stock at US$14.10 per share. The eyebrow raising move amounted to a reduction of 11% in their holding.

Check out our latest analysis for Adverum Biotechnologies

Adverum Biotechnologies Insider Transactions Over The Last Year

Notably, that recent sale by President Leone Patterson was not the only time they sold Adverum Biotechnologies shares this year. They previously made an even bigger sale of -US$325k worth of shares at a price of US$24.68 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$13.43). So it is hard to draw any strong conclusion from it.

Over the last year, we can see that insiders have bought 43.98k shares worth US$552k. But insiders sold 25.70k shares worth US$502k. In the last twelve months there was more buying than selling by Adverum Biotechnologies insiders. 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!

insider-trading-volume
NasdaqGM:ADVM Insider Trading Volume February 13th 2021

Adverum Biotechnologies is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Adverum Biotechnologies Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 0.7% of Adverum Biotechnologies shares, worth about US$8.7m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Do The Adverum Biotechnologies Insider Transactions Indicate?

Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Adverum Biotechnologies insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Adverum Biotechnologies is showing 4 warning signs in our investment analysis, and 3 of those are a bit concerning...

But note: Adverum Biotechnologies 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, but not derivative transactions.

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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. 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.
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