Potential Savara Inc. (NASDAQ:SVRA) shareholders may wish to note that the Independent Director, David Ramsay, recently bought US$142k worth of stock, paying US$1.42 for each share. While that's a very decent purchase to our minds, it was proportionally a bit modest, boosting their holding by just 6.2%.
Savara Insider Transactions Over The Last Year
In fact, the recent purchase by Independent Director David Ramsay was not their only acquisition of Savara shares this year. Earlier in the year, they paid US$1.08 per share in a US$215k purchase. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.45. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While Savara insiders bought shares during the last year, they didn't sell. Their average price was about US$1.21. It is certainly positive to see that insiders have invested their own money 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Savara 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.
Does Savara Boast High Insider Ownership?
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. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$3.4m worth of Savara stock, about 2.0% of the company. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Savara Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Savara insiders are reasonably well aligned, and optimistic for the future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 2 warning signs for Savara (1 can't be ignored!) that we believe deserve your full attention.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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