Trade Alert: The Chairman & CEO Of Savara Inc. (NASDAQ:SVRA), Matthew Pauls, Has Just Spent US$50k Buying 4,415% More Shares

Even if it's not a huge purchase, we think it was good to see that Matthew Pauls, the Chairman & CEO of Savara Inc. (NASDAQ:SVRA) recently shelled out US$50k to buy stock, at US$1.74 per share. While that isn't the hugest buy, it actually boosted their shareholding by 4,415%, which is good to see.

Check out our latest analysis for Savara

The Last 12 Months Of Insider Transactions At Savara

Notably, that recent purchase by Matthew Pauls is the biggest insider purchase of Savara shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of US$1.80. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Savara insider decided to buy shares at close to current prices. Matthew Pauls was the only individual insider to buy shares in the last twelve months.

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!

Savara 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.

Does Savara Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. From looking at our data, insiders own US$1.6m worth of Savara stock, about 1.7% of the company. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Savara Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Savara insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 5 warning signs for Savara (of which 1 is potentially serious!) you should know about.

Of course Savara 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. 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.
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