Stock Analysis

Innoviva, Inc.'s stock is down 7.0%, but insiders still have about US$97k in profit after buying earlier this year

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Innoviva, Inc. (NASDAQ:INVA) insiders who acquired shares over the previous 12 months, can probably afford to ignore the recent 7.0% decline in the stock price. After taking the recent loss into consideration, the US$264k worth of stock they bought is now worth US$362k, indicating that their investment yielded a positive return.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Innoviva

Innoviva Insider Transactions Over The Last Year

The Independent Chairman of the Board George Bickerstaff made the biggest insider purchase in the last 12 months. That single transaction was for US$264k worth of shares at a price of US$13.46 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$18.08. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

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!

NasdaqGS:INVA Insider Trading Volume April 20th 2022

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of Innoviva

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 0.6% of Innoviva shares, worth about US$7.3m, according to our data. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Innoviva Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. But insiders have shown more of an appetite for the stock, over the last year. We'd like to see bigger individual holdings. However, we don't see anything to make us think Innoviva insiders are doubting the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 1 warning sign with Innoviva and understanding this should be part of your investment process.

But note: Innoviva may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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