Trade Alert: The Co-Founder & Independent Chairman of the Board Of Verve Therapeutics, Inc. (NASDAQ:VERV), Burt Adelman, Has Just Spent US$86k Buying A Few More Shares

By
Simply Wall St
Published
March 19, 2022
NasdaqGS:VERV
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Burt Adelman, the Co-Founder & Independent Chairman of the Board of Verve Therapeutics, Inc. (NASDAQ:VERV) recently shelled out US$86k to buy stock, at US$21.38 per share. Nevertheless, it only increased their shareholding by a minuscule percentage, and it wasn't a massive purchase by absolute value, either.

See our latest analysis for Verve Therapeutics

Verve Therapeutics Insider Transactions Over The Last Year

Notably, that recent purchase by Co-Founder & Independent Chairman of the Board Burt Adelman was not the only time they bought Verve Therapeutics shares this year. They previously made an even bigger purchase of US$147k worth of shares at a price of US$31.34 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$24.98). 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. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.

While Verve Therapeutics insiders bought shares during the last year, they didn't sell. They paid about US$24.66 on average. Although they bought at below the recent share price, it is good to see that insiders are willing to invest in the company. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:VERV Insider Trading Volume March 19th 2022

Verve Therapeutics 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.

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. It's great to see that Verve Therapeutics insiders own 10.0% of the company, worth about US$121m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Verve Therapeutics Tell Us?

The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Verve Therapeutics. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Verve Therapeutics. At Simply Wall St, we've found that Verve Therapeutics has 4 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

But note: Verve Therapeutics 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.