Have Insiders Been Buying Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP) Shares This Year?

By
Simply Wall St
Published
January 09, 2021

We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP).

Do Insider Transactions Matter?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.

We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

View our latest analysis for Corbus Pharmaceuticals Holdings

Corbus Pharmaceuticals Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Head of Research & Chief Medical Officer Barbara White bought US$57k worth of shares at a price of US$3.63 per share. That means that even when the share price was higher than US$1.41 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.

While Corbus Pharmaceuticals Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and 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!

NasdaqGM:CRBP Insider Trading Volume January 9th 2021

Corbus Pharmaceuticals Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Have Corbus Pharmaceuticals Holdings Insiders Traded Recently?

We saw some Corbus Pharmaceuticals Holdings insider buying shares in the last three months. CEO & Director Yuval Cohen purchased US$5.1k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

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. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own US$2.0m worth of Corbus Pharmaceuticals Holdings stock, about 1.7% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Corbus Pharmaceuticals Holdings Tell Us?

We note a that there has been a bit of insider buying recently (but no selling). Overall the buying isn't worth writing home about. 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 Corbus Pharmaceuticals Holdings insiders are doubting the company. 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. Be aware that Corbus Pharmaceuticals Holdings is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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