Anyone interested in Immunovant, Inc. (NASDAQ:IMVT) should probably be aware that the CEO & Director, Peter Salzmann, recently divested US$425k worth of shares in the company, at an average price of US$25.45 each. However, the silver lining is that the sale only reduced their total holding by 3.5%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Immunovant
In fact, the recent sale by CEO & Director Peter Salzmann was not their only sale of Immunovant shares this year. Earlier in the year, they fetched US$29.94 per share in a -US$990k sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$26.87). So it may not tell us anything about how insiders feel about the current share price.
In the last year Immunovant insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Immunovant better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. Immunovant insiders own about US$35m worth of shares. That equates to 0.9% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Immunovant Insider Transactions Indicate?
Insiders haven't bought Immunovant stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! 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. Every company has risks, and we've spotted 3 warning signs for Immunovant (of which 1 is a bit unpleasant!) you should know about.
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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
