Selling Tevogen Bio Holdings Shares at a Lower Price Than Current Market Value May Have Been a Costly Mistake for Insiders

Tevogen Bio Holdings Inc.'s (NASDAQ:TVGN) value has fallen 12% in the last week, but insiders who sold US$4.3m worth of stock over the last year have had less success. Insiders would probably have been better off holding on to their shares given that the average selling price of US$1.34 is still lower than the current share price.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

The Last 12 Months Of Insider Transactions At Tevogen Bio Holdings

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Ryan Saadi, for US$1.8m worth of shares, at about US$1.23 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$1.08). So it may not shed much light on insider confidence at current levels.

Tevogen Bio Holdings insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and 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!

Check out our latest analysis for Tevogen Bio Holdings

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).

Tevogen Bio Holdings Insiders Are Selling The Stock

The last quarter saw substantial insider selling of Tevogen Bio Holdings shares. In total, Co-Founder Ryan Saadi sold US$1.8m worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It's great to see that Tevogen Bio Holdings insiders own 90% of the company, worth about US$193m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Tevogen Bio Holdings Insider Transactions Indicate?

An insider hasn't bought Tevogen Bio Holdings stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Tevogen Bio Holdings. Be aware that Tevogen Bio Holdings is showing 5 warning signs in our investment analysis, and 2 of those make us uncomfortable...

But note: Tevogen Bio Holdings 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 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.