Anyone interested in Innoviva, Inc. (NASDAQ:INVA) should probably be aware that the Chief Accounting Officer & Secretary, Marianne Zhen, recently divested US$154k worth of shares in the company, at an average price of US$13.99 each. That sale was 21% of their holding, so it does make us raise an eyebrow.

Check out our latest analysis for Innoviva

Innoviva Insider Transactions Over The Last Year

In fact, the recent sale by Marianne Zhen was the biggest sale of Innoviva shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$13.72. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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!

I will like Innoviva better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Innoviva Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. Our data indicates that Innoviva insiders own about US$8.2m worth of shares (which is 0.9% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Innoviva Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Zooming out, the longer term picture doesn't give us much comfort. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we're not rushing to buy, to say the least. 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 5 warning signs for Innoviva (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

Of course Innoviva 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.