It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell ImmunoGen, Inc. (NASDAQ:IMGN), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
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. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
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ImmunoGen Insider Transactions Over The Last Year
Daniel Junius made the biggest insider sale in the last 12 months. That single transaction was for US$292k worth of shares at a price of US$11.68 each. That is hardly a positive sign, even though it took place above the latest price (US$5.20). So it may not tell us anything about how insiders feel about the current share price. Daniel Junius was the only individual insider to sell shares in the last twelve months.
Daniel Junius ditched 36.71k shares over the year. The average price per share was US$11.78. You can see the insider transactions (by individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
ImmunoGen Insiders Bought Stock Recently
Over the last quarter, ImmunoGen insiders have spent a meaningful amount on shares. Specifically, Mark Goldberg bought US$173k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data indicates that ImmunoGen insiders own about US$8.5m worth of shares (which is 1.2% of the company). Overall, this level of ownership isn’t that impressive, but it’s certainly better than nothing!
So What Do The ImmunoGen Insider Transactions Indicate?
It is good to see recent insider purchase. On the other hand the transaction history, over the last year, isn’t so positive. The transactions over the last year don’t give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. 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 ImmunoGen 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.