Trade Alert: The Independent Chairman Of Adverum Biotechnologies, Inc. (NASDAQ:ADVM), C. Machado, Has Just Spent US$115k Buying 15% More Shares

By
Simply Wall St
Published
January 22, 2021
NasdaqGM:ADVM

Investors who take an interest in Adverum Biotechnologies, Inc. (NASDAQ:ADVM) should definitely note that the Independent Chairman, C. Machado, recently paid US$11.52 per share to buy US$115k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 15%.

Check out our latest analysis for Adverum Biotechnologies

The Last 12 Months Of Insider Transactions At Adverum Biotechnologies

The President, Leone Patterson, made the biggest insider sale in the last 12 months. That single transaction was for US$325k worth of shares at a price of US$24.68 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$13.42). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Leone Patterson.

Over the last year, we can see that insiders have bought 43.98k shares worth US$552k. But insiders sold 13.17k shares worth US$325k. 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. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGM:ADVM Insider Trading Volume January 22nd 2021

Adverum Biotechnologies is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider 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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Adverum Biotechnologies insiders own about US$8.7m worth of shares (which is 0.7% of the company). We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Adverum Biotechnologies Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Adverum Biotechnologies 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. For instance, we've identified 4 warning signs for Adverum Biotechnologies (3 are a bit concerning) you should be aware of.

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, 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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