It is not uncommon to see companies perform well in the years after insiders buy shares. 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 shareholders might well want to know whether insiders have been buying or selling shares in Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS).
What Is Insider Selling?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, rules govern insider transactions, and certain disclosures are required.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. 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’.
The Last 12 Months Of Insider Transactions At Corvus Pharmaceuticals
Chief Financial Officer Leiv Lea made the biggest insider purchase in the last 12 months. That single transaction was for US$102k worth of shares at a price of US$4.15 each. That implies that an insider found the current price of US$4.33 per share to be enticing. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. While we always like to see insider buying, it’s less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Corvus Pharmaceuticals insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders bought 61202 shares for a total of US$251k. Corvus Pharmaceuticals may have bought shares in the last year, but they didn’t sell any. 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 always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Corvus Pharmaceuticals
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 8.4% of Corvus Pharmaceuticals shares, worth about US$11m. 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 Corvus Pharmaceuticals Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Corvus Pharmaceuticals shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Corvus Pharmaceuticals and we see no evidence to suggest they are worried about the future. Of course, the future is what matters most. So if you are interested in Corvus Pharmaceuticals, you should check out this free report on analyst forecasts for the company.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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