Quite a few insiders invested in Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) last year which is positive news for shareholders

When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Corvus Pharmaceuticals, Inc.'s (NASDAQ:CRVS) instance, it's good news for shareholders.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Corvus Pharmaceuticals

Corvus Pharmaceuticals Insider Transactions Over The Last Year

The Chief Financial Officer Leiv Lea made the biggest insider purchase in the last 12 months. That single transaction was for US$77k worth of shares at a price of US$1.65 each. That means that an insider was happy to buy shares at above the current price of US$0.83. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.

Corvus Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. They paid about US$1.05 on average. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insiders At Corvus Pharmaceuticals Have Bought Stock Recently

Over the last quarter, Corvus Pharmaceuticals insiders have spent a meaningful amount on shares. In total, insiders bought US$86k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Does Corvus Pharmaceuticals 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$1.6m worth of Corvus Pharmaceuticals stock, about 4.1% of the company. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Corvus Pharmaceuticals Insiders?

It is good to see recent purchasing. 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. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Corvus Pharmaceuticals insiders are reasonably well aligned, 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. Case in point: We've spotted 4 warning signs for Corvus Pharmaceuticals you should be aware of, and 2 of these are potentially serious.

Of course Corvus Pharmaceuticals 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, but not derivative transactions.

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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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