Insiders who purchased US$163.6k worth of Evommune, Inc. (NYSE:EVMN) shares over the past year recouped some of their losses after price gained 22% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$88k.
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.
Evommune Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Arthur Kirsch bought US$133k worth of shares at a price of US$13.30 per share. That means that even when the share price was higher than US$6.31 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Evommune insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
View our latest analysis for Evommune
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Evommune insiders have about 2.5% of the stock, worth approximately US$4.7m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Evommune Insiders?
The fact that there have been no Evommune insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Evommune stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Evommune. Case in point: We've spotted 3 warning signs for Evommune you should be aware of, and 1 of them doesn't sit too well with us.
But note: Evommune 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 of direct interests only, but not derivative transactions or indirect interests.
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