Investors who take an interest in Savara Inc. (NASDAQ:SVRA) should definitely note that the Independent Director, David Ramsay, recently paid US$2.88 per share to buy US$288k worth of the stock. Although the purchase only increased their holding by 4.5%, it is still a solid purchase in our view.
Savara Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Matthew Pauls, for US$396k worth of shares, at about US$4.71 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$3.13). So it is hard to draw any strong conclusion from it.
All up, insiders sold more shares in Savara than they bought, over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
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. 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 Savara insiders own about US$9.4m worth of shares (which is 1.9% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Savara Tell Us?
It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. 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. For instance, we've identified 3 warning signs for Savara (1 doesn't sit too well with us) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.
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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.
