Verve Therapeutics' Market Cap Up US$69m Following Year Of Insider Stock Buying

Verve Therapeutics, Inc. (NASDAQ:VERV) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 11%, resulting in a US$69m rise in the company's market capitalisation, translating to a gain of 29% on their initial investment. Put another way, the original US$475.8k acquisition is now worth US$612.6k.

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.

See our latest analysis for Verve Therapeutics

Verve Therapeutics Insider Transactions Over The Last Year

The President Andrew Ashe made the biggest insider purchase in the last 12 months. That single transaction was for US$476k worth of shares at a price of US$6.26 each. We do like to see buying, but this purchase was made at well below the current price of US$8.06. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Verve Therapeutics is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Verve Therapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 5.3% of Verve Therapeutics shares, worth about US$34m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Verve Therapeutics Insider Transactions Indicate?

The fact that there have been no Verve Therapeutics insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Verve Therapeutics and their transactions don't cause us concern. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we've spotted with Verve Therapeutics (including 1 which is concerning).

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.

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