Despite Hitting US$0.40, BioVie Insiders Still Sold Too Soon

BioVie Inc.'s (NASDAQ:BIVI) stock price has dropped 16% in the previous week, but insiders who sold US$192k in stock over the past year have had less luck. The average selling price of US$2.02 is still lower than the current share price, or in other words, insiders would have been better off holding on to their shares.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for BioVie

The Last 12 Months Of Insider Transactions At BioVie

In the last twelve months, the biggest single sale by an insider was when the Independent Director, Steven Gorlin, sold US$128k worth of shares at a price of US$1.69 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$0.40. So it may not shed much light on insider confidence at current levels.

All up, insiders sold more shares in BioVie 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 want to know exactly who sold, for how much, and when, simply click on the graph below!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of BioVie

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$306k worth of BioVie stock, about 1.2% of the company. We prefer to see high levels of insider ownership.

So What Do The BioVie Insider Transactions Indicate?

The fact that there have been no BioVie insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by BioVie insiders. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 5 warning signs for BioVie (of which 4 are significant!) you should know about.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com