John Bode Bought 33% More Shares In Zevra Therapeutics

Even if it's not a huge purchase, we think it was good to see that John Bode, the Independent Director of Zevra Therapeutics, Inc. (NASDAQ:ZVRA) recently shelled out US$80k to buy stock, at US$7.96 per share. That purchase might not be huge but it did increase their holding by 33%.

Zevra Therapeutics Insider Transactions Over The Last Year

In fact, the recent purchase by John Bode was the biggest purchase of Zevra Therapeutics shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of US$8.01 per share to be enticing. 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. 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. The good news for Zevra Therapeutics share holders is that insiders were buying at near the current price.

While Zevra Therapeutics insiders bought shares during the last year, they didn't sell. Their average price was about US$6.89. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Zevra Therapeutics

Zevra Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership

Many investors like to check how much of a company is owned by 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. Insiders own 6.6% of Zevra Therapeutics shares, worth about US$29m. 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 Zevra Therapeutics Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Insiders likely see value in Zevra Therapeutics shares, given these transactions (along with notable insider ownership of the company). 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. Be aware that Zevra Therapeutics is showing 2 warning signs in our investment analysis, and 1 of those is significant...

Of course Zevra Therapeutics 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 of direct interests only, but not derivative transactions or indirect interests.

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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.