Great news for Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS): Insiders acquired stock in large numbers last year
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Corvus Pharmaceuticals, Inc.'s (NASDAQ:CRVS) case, it's fantastic news for 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 Corvus Pharmaceuticals
The Last 12 Months Of Insider Transactions At Corvus Pharmaceuticals
The Chief Financial Officer Leiv Lea made the biggest insider purchase in the last 12 months. That single transaction was for US$77k worth of shares at a price of US$1.65 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.04). 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 always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Corvus Pharmaceuticals insiders bought shares during the last year, they didn't sell. They paid about US$1.47 on average. I'd consider this a positive as it suggests insiders see value at around the current price. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Corvus Pharmaceuticals Insiders Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Corvus Pharmaceuticals. Co-Founder Richard Miller purchased US$16k worth of shares in that period. It's good to see the insider buying, as well as the lack of recent sellers. However, in this case the amount invested recently is quite small.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Based on our data, Corvus Pharmaceuticals insiders have about 3.8% of the stock, worth approximately US$1.8m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Corvus Pharmaceuticals Insiders?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Corvus Pharmaceuticals insiders are doubting the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Corvus Pharmaceuticals. When we did our research, we found 6 warning signs for Corvus Pharmaceuticals (2 don't sit too well with us!) that we believe deserve your full attention.
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.
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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