PMV Pharmaceuticals Insider Stock Sellers Must Be Relieved As Market Cap Falls To US$75m

Over the past year, insiders sold US$152k worth of PMV Pharmaceuticals, Inc. (NASDAQ:PMVP) stock at an average price of US$1.06 per share allowing them to get the most out of their money. The company's market worth decreased by US$9.0m over the past week after the stock price dropped 11%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At PMV Pharmaceuticals

Over the last year, we can see that the biggest insider sale was by the Co-Founder, David Mack, for US$62k worth of shares, at about US$1.06 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$1.41. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 6.1% of David Mack's stake.

Insiders in PMV Pharmaceuticals didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for PMV Pharmaceuticals

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Insider Ownership Of PMV Pharmaceuticals

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data suggests PMV Pharmaceuticals insiders own 3.4% of the company, worth about US$2.5m. I generally like to see higher levels of ownership.

So What Does This Data Suggest About PMV Pharmaceuticals Insiders?

The fact that there have been no PMV Pharmaceuticals insider transactions recently certainly doesn't bother us. Our analysis of PMV Pharmaceuticals insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that PMV Pharmaceuticals is showing 4 warning signs in our investment analysis, and 1 of those doesn't sit too well with us...

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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.