We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 before you buy or sell Iovance Biotherapeutics, Inc. (NASDAQ:IOVA), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Iovance Biotherapeutics Insider Transactions Over The Last Year
Chairman of the Board Iain Dukes made the biggest insider purchase in the last 12 months. That single transaction was for US$104k worth of shares at a price of US$8.65 each. That means that an insider was happy to buy shares at around the current price. 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. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
In the last twelve months insiders paid US$200k for 22.00k shares purchased. In the last twelve months there was more buying than selling by Iovance Biotherapeutics insiders. They paid about US$9.09 on average. Although they bought at below the recent price of US$10.77 per share, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions (by 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!
Iovance Biotherapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Iovance Biotherapeutics Insiders Bought Stock Recently
Over the last three months, we’ve seen significant insider buying at Iovance Biotherapeutics. Not only was there no selling that we can see, but they collectively bought US$200k worth of shares. That shows some optimism about the company’s future.
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Insiders own 6.7% of Iovance Biotherapeutics shares, worth about US$89m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Iovance Biotherapeutics Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. Given that insiders also own a fair bit of Iovance Biotherapeutics we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Iovance Biotherapeutics, you should check out this free report on analyst forecasts for the company.
But note: Iovance Biotherapeutics 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.
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