We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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The Last 12 Months Of Insider Transactions At Corvus Pharmaceuticals
In the last twelve months, the biggest single purchase by an insider was when Co-Founder Richard Miller bought US$850k worth of shares at a price of US$8.50 per share. So it’s clear an insider wanted to buy, even at a higher price. 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. We generally consider it a positive if insiders have been buying on market, even above the current price.
Over the last year, we can see that insiders have bought 161.20k shares worth US$1.1m. In total, Corvus Pharmaceuticals insiders bought more than they sold over the last year. The average buy price was around US$6.83. This is nice to see since it implies that insiders might see value around current prices (around US$4.12). You can see the insider transactions (by 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!
Corvus Pharmaceuticals is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Corvus Pharmaceuticals Insiders Bought Stock Recently
Over the last quarter, Corvus Pharmaceuticals insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out US$251k for shares in the company — and none sold. This could be interpreted as suggesting a positive outlook.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Corvus Pharmaceuticals insiders own about US$7.5m worth of shares (which is 6.3% of the company). Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The Corvus Pharmaceuticals Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Corvus Pharmaceuticals stock. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Corvus Pharmaceuticals may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.