Insider Sellers Might Regret Selling Tevogen Bio Holdings Shares at a Lower Price Than Current Market Value

Tevogen Bio Holdings Inc.'s (NASDAQ:TVGN) value has fallen 10% in the last week, but insiders who sold US$1.7m worth of stock over the last year have had less success. Insiders might have been better off holding onto their shares, given that the average selling price of US$1.62 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Tevogen Bio Holdings

Tevogen Bio Holdings Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Chief Scientific Officer and Global R&D Lead, Neal Flomenberg, sold US$1.7m worth of shares at a price of US$1.62 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.42. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Neal Flomenberg.

In the last twelve months insiders purchased 5.61k shares for US$4.5k. On the other hand they divested 1.08m shares, for US$1.7m. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Tevogen Bio Holdings Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Tevogen Bio Holdings insiders own 92% of the company, worth about US$229m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Tevogen Bio Holdings Tell Us?

It doesn't really mean much that no insider has traded Tevogen Bio Holdings shares in the last quarter. While we feel good about high insider ownership of Tevogen Bio Holdings, we can't say the same about the selling of shares. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 4 warning signs for Tevogen Bio Holdings (3 shouldn't be ignored!) that we believe deserve your full attention.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.