Yahoo Finance Zevra Therapeutics Insider Confidence Rewarded, Stock Hits US$235m Market Cap
Last week, Zevra Therapeutics, Inc. (NASDAQ:ZVRA) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 42% last week, resulting in a US$76m increase in the company's market worth, implying a 22% gain on their initial purchase. As a result, their original purchase of US$107.6k worth of stock is now worth US$131.4k.
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.
View our latest analysis for Zevra Therapeutics
The Last 12 Months Of Insider Transactions At Zevra Therapeutics
Over the last year, we can see that the biggest insider purchase was by Independent Director John Bode for US$51k worth of shares, at about US$5.13 per share. Even though the purchase was made at a significantly lower price than the recent price (US$6.11), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Zevra Therapeutics insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Zevra Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insider Ownership Of Zevra Therapeutics
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Zevra Therapeutics insiders own about US$18m worth of shares. That equates to 7.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Zevra Therapeutics Insiders?
The fact that there have been no Zevra Therapeutics insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Zevra Therapeutics insiders are doubting the company, and they do own shares. 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Zevra Therapeutics.
But note: Zevra Therapeutics 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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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.
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