Selling US$2.0m worth of Immunovant, Inc. (NASDAQ:IMVT) stock at high prices would have gotten insiders a handsome reward

Last week, Immunovant, Inc.'s (NASDAQ:IMVT) stock jumped 14%, but insiders who sold US$2.0m worth of stock in over the past year are likely to be in a better position. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$7.09, which is higher than the current price, may have been the best decision.

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.

Check out our latest analysis for Immunovant

Immunovant Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO & Director, Peter Salzmann, for US$907k worth of shares, at about US$7.25 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$5.58. So it may not tell us anything about how insiders feel about the current share price.

In total, Immunovant insiders sold more than they bought over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Immunovant Insiders Bought Stock Recently

Over the last three months, we've seen significantly more insider buying, than insider selling, at Immunovant. In total, Executive Chairperson of the Board Frank Torti bought US$116k worth of shares in that time. But we did see insider selling worth US$33k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Based on our data, Immunovant insiders have about 0.4% of the stock, worth approximately US$2.3m. We prefer to see high levels of insider ownership.

So What Do The Immunovant Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that Immunovant has 3 warning signs (1 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Immunovant 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, but not derivative transactions.

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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.