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Immunovant, Inc. (NASDAQ:IMVT) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 5.5% resulting in a US$53m addition to the company’s market value. In other words, the original US$287k purchase is now worth US$315k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Immunovant Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Douglas Hughes bought US$150k worth of shares at a price of US$8.24 per share. That means that an insider was happy to buy shares at around the current price of US$8.82. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Immunovant insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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.
Immunovant Insiders Bought Stock Recently
Over the last quarter, Immunovant insiders have spent a meaningful amount on shares. Overall, four insiders shelled out US$287k for shares in the company -- and none sold. That shows some optimism about the company's future.
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Our data suggests Immunovant insiders own 0.2% of the company, worth about US$2.2m. We prefer to see high levels of insider ownership.
So What Do The Immunovant Insider Transactions Indicate?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Immunovant insiders are expecting a bright 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. Our analysis shows 4 warning signs for Immunovant (2 are a bit unpleasant!) and we strongly recommend you look at these before investing.
Of course Immunovant 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.
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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