It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell AlloVir, Inc. (NASDAQ:ALVR), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

See our latest analysis for AlloVir

AlloVir Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Morana Jovan-Embiricos for US$49m worth of shares, at about US$17.00 per share. Even though the purchase was made at a significantly lower price than the recent price (US$21.17), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

Over the last year, we can see that insiders have bought 2.91m shares worth US$50m. But insiders sold 274.34k shares worth US$8.5m. In the last twelve months there was more buying than selling by AlloVir insiders. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

AlloVir is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

AlloVir Insiders Are Selling The Stock

The last three months saw significant insider selling at AlloVir. In total, Chief Scientific Officer Ann Leen sold US$3.4m worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.

Does AlloVir 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that AlloVir insiders own 31% of the company, worth about US$406m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.