As CureVac N.V.'s market cap (NASDAQ:CVAC) drops to US$1.4b, insiders might be questioning their decision to buy earlier this year
The recent 7.1% drop in CureVac N.V.'s (NASDAQ:CVAC) stock could come as a blow to insiders who purchased €97m worth of stock at an average buy price of €16.97 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only €37m.
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.
View our latest analysis for CureVac
The Last 12 Months Of Insider Transactions At CureVac
In the last twelve months, the biggest single purchase by an insider was when insider Dietmar Hopp bought US$97m worth of shares at a price of US$16.97 per share. That means that an insider was happy to buy shares at above the current price of US$6.50. It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Dietmar Hopp was the only individual insider to buy shares in the last twelve months.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Does CureVac 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. CureVac insiders own about US$12m worth of shares. That equates to 0.9% of the company. 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 Does This Data Suggest About CureVac Insiders?
The fact that there have been no CureVac insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Insiders do have a stake in CureVac and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CureVac. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of CureVac.
Of course CureVac 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, but not derivative transactions.
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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.
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