Bullish Annovis Bio Insider Buying Worth US$7.10m Yet To Pay Off

The recent price decline of 25% in Annovis Bio, Inc.'s (NYSE:ANVS) stock may have disappointed insiders who bought US$7.10m worth of shares at an average price of US$1.20 in the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$4.99m.

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.

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The Last 12 Months Of Insider Transactions At Annovis Bio

In fact, the recent purchase by Michael M. Hoffman was the biggest purchase of Annovis Bio shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$0.84). 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. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. Michael M. Hoffman was the only individual insider to buy during the last year.

Michael M. Hoffman bought a total of 5.91m shares over the year at an average price of US$1.20. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

See our latest analysis for Annovis Bio

Annovis Bio is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Annovis Bio

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Annovis Bio insiders own about US$4.0m worth of shares (which is 7.6% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Annovis Bio Insider Transactions Indicate?

The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Annovis Bio stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Annovis Bio. To that end, you should learn about the 6 warning signs we've spotted with Annovis Bio (including 4 which are a bit concerning).

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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