Pleasing Signs As A Number Of Insiders Buy Vera Therapeutics Stock

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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Vera Therapeutics, Inc. (NASDAQ:VERA), it sends a favourable message to the company's shareholders.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Vera Therapeutics

Vera Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Chief Financial Officer Sean Grant bought US$100k worth of shares at a price of US$7.00 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$15.38. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.

Vera Therapeutics insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around US$8.92. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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insider-trading-volume

Vera Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. Based on our data, Vera Therapeutics insiders have about 0.7% of the stock, worth approximately US$4.7m. However, it's possible that insiders might have an indirect interest through a more complex structure. I generally like to see higher levels of ownership.

So What Does This Data Suggest About Vera Therapeutics Insiders?

The fact that there have been no Vera Therapeutics insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Vera Therapeutics insiders are doubting the company. While we like knowing 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. For instance, we've identified 3 warning signs for Vera Therapeutics (2 are significant) you should be aware of.

But note: Vera Therapeutics 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 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.

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