Insiders Rewarded With US$3.9m Addition To Investment As Corvus Pharmaceuticals Stock Hits US$480m

Insiders who bought Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) stock in the last 12 months were richly rewarded last week. The company's market value increased by US$69m as a result of the stock's 15% gain over the same period. As a result, their original purchase of US$1.03m worth of stock is now worth US$4.97m.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Corvus Pharmaceuticals

The Last 12 Months Of Insider Transactions At Corvus Pharmaceuticals

In the last twelve months, the biggest single purchase by an insider was when Co-Founder Richard Miller bought US$1m worth of shares at a price of US$1.73 per share. Even though the purchase was made at a significantly lower price than the recent price (US$8.31), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

While Corvus Pharmaceuticals 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership Of Corvus Pharmaceuticals

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Corvus Pharmaceuticals insiders own about US$17m worth of shares. That equates to 3.5% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Corvus Pharmaceuticals Tell Us?

The fact that there have been no Corvus Pharmaceuticals insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders own shares in Corvus Pharmaceuticals and we see no evidence to suggest they are worried about the future. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Corvus Pharmaceuticals you should be aware of, and 1 of these is concerning.

Of course Corvus Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality 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.