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Over the last year, a good number of insiders have significantly increased their holdings in Iovance Biotherapeutics, Inc. (NASDAQ:IOVA). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Iovance Biotherapeutics
The Last 12 Months Of Insider Transactions At Iovance Biotherapeutics
The Independent Director Wayne Rothbaum made the biggest insider purchase in the last 12 months. That single transaction was for US$46m worth of shares at a price of US$9.15 each. That means that an insider was happy to buy shares at above the current price of US$6.19. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Iovance Biotherapeutics insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does Iovance Biotherapeutics Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Iovance Biotherapeutics insiders own 9.6% of the company, currently worth about US$175m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Iovance Biotherapeutics Insider Transactions Indicate?
It doesn't really mean much that no insider has traded Iovance Biotherapeutics shares in the last quarter. However, our analysis of transactions over the last year is heartening. It would be great to see more insider buying, but overall it seems like Iovance Biotherapeutics insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. 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. In terms of investment risks, we've identified 1 warning sign with Iovance Biotherapeutics and understanding it should be part of your investment process.