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 Adverum Biotechnologies, Inc. (NASDAQ:ADVM), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Adverum Biotechnologies Insider Transactions Over The Last Year
The Independent Director, James Scopa, made the biggest insider sale in the last 12 months. That single transaction was for US$109k worth of shares at a price of US$2.18 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.58. So it may not tell us anything about how insiders feel about the current share price.
In the last twelve months insiders purchased 176.93k shares for US$214k. But insiders sold 54.77k shares worth US$119k. In total, Adverum Biotechnologies insiders bought more than they sold over the last year. Their average price was about US$1.21. It is certainly positive to see that insiders have invested their own money in the company. But we must note that the investments were made at well below today's share price. You can see the insider transactions (by companies and 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Adverum Biotechnologies Have Bought Stock Recently
Over the last quarter, Adverum Biotechnologies insiders have spent a meaningful amount on shares. In total, insiders bought US$67k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership of Adverum Biotechnologies
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Adverum Biotechnologies insiders have about 2.1% of the stock, worth approximately US$3.3m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Adverum Biotechnologies Insiders?
The recent insider purchases are heartening. 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. 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 Adverum Biotechnologies stock. 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. At Simply Wall St, we've found that Adverum Biotechnologies has 3 warning signs (2 make us uncomfortable!) that deserve your attention before going any further with your analysis.
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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