Verve Therapeutics, Inc. (NASDAQ:VERV) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 7.1% resulting in a US$98m addition to the company's market value. As a result, their original purchase of US$207k worth of stock is now worth US$336k.
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.
Check out our latest analysis for Verve Therapeutics
The Last 12 Months Of Insider Transactions At Verve Therapeutics
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Burt Adelman for US$122k worth of shares, at about US$12.15 per share. We do like to see buying, but this purchase was made at well below the current price of US$24.01. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Burt Adelman purchased 14.00k shares over the year. The average price per share was US$14.79. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. 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.
Insiders At Verve Therapeutics Have Sold Stock Recently
We have seen a bit of insider selling at Verve Therapeutics, over the last three months. Chief Scientific Officer & Chief Medical Officer Andrew Bellinger sold just US$20k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.
Does Verve Therapeutics Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Verve Therapeutics insiders own 8.2% of the company, worth about US$122m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Verve Therapeutics Insiders?
While there has not been any insider buying in the last three months, there has been selling. However, the sales are not big enough to concern us at all. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Verve Therapeutics insiders feel good about the company's future. 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. To that end, you should learn about the 5 warning signs we've spotted with Verve Therapeutics (including 2 which are potentially serious).
But note: Verve 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, 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.