We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Corbus Pharmaceuticals Holdings, Inc. (NASDAQ:CRBP).
What Is Insider Buying?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.'
Corbus Pharmaceuticals Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Robert Discordia is the biggest insider purchase of Corbus Pharmaceuticals Holdings shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is US$6.10. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months insiders paid US$244k for 38466 shares purchased. In the last twelve months Corbus Pharmaceuticals Holdings insiders were buying shares, but not selling. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Corbus Pharmaceuticals Holdings 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.
Corbus Pharmaceuticals Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Corbus Pharmaceuticals Holdings. Overall, four insiders shelled out US$124k for shares in the company -- and none sold. This makes one think the business has some good points.
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 5.5% of Corbus Pharmaceuticals Holdings shares, worth about US$22m. 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 Corbus Pharmaceuticals Holdings Insiders?
It is good to see recent purchasing. 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 Corbus Pharmaceuticals Holdings shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Corbus Pharmaceuticals Holdings, you should check out this free report on analyst forecasts for the company.
But note: Corbus Pharmaceuticals 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, but not derivative transactions.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.