Nasdaq
华尔街日报Insiders Could Have Profited By Holding onto Innventure Shares Despite 14% Drop
Innventure, Inc.'s (NASDAQ:INV) value has fallen 14% in the last week, but insiders who sold US$2.3m worth of stock over the last year have had less success. Given that the average selling price of US$5.13 is still lower than the current share price, insiders would probably have been better off keeping their shares.
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.
Innventure Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chief Strategy Officer, John Scott, sold US$2.3m worth of shares at a price of US$5.13 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of US$3.59. So it is hard to draw any strong conclusion from it. John Scott was the only individual insider to sell over the last year.
Happily, we note that in the last year insiders paid US$244k for 58.79k shares. On the other hand they divested 452.67k shares, for US$2.3m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for Innventure
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).
Insiders At Innventure Have Sold Stock Recently
Over the last three months, we've seen notably more insider selling, than insider buying, at Innventure. In total, Chief Strategy Officer John Scott sold US$2.3m worth of shares in that time. Meanwhile insiders bought US$244k worth , as we said above . The share price has moved a bit recently, but it's hard to argue that the selling is a positive.
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Innventure shares, worth about US$70m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Innventure Insiders?
The insider sales have outweighed the insider buying, at Innventure, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. At Simply Wall St, we've found that Innventure has 5 warning signs (2 shouldn't be ignored!) that deserve your attention before going any further with your analysis.
Of course Innventure may not be the best stock to buy. So you may wish to see this free collection of high quality 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.