This Insider Has Just Sold Shares In Immunovant

Some Immunovant, Inc. (NASDAQ:IMVT) shareholders may be a little concerned to see that the CEO & Director, Peter Salzmann, recently sold a substantial US$990k worth of stock at a price of US$29.06 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.0%.

Check out our latest analysis for Immunovant

Immunovant Insider Transactions Over The Last Year

In fact, the recent sale by CEO & Director Peter Salzmann was not their only sale of Immunovant shares this year. Earlier in the year, they fetched US$22.04 per share in a -US$2.2m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of US$27.75. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 27% of Peter Salzmann's stake.

Insiders in Immunovant didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Immunovant better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Immunovant

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Immunovant insiders own 0.8% of the company, worth about US$33m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Immunovant Insiders?

Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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 Immunovant is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

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.