Nasdaq-Listed Companies

AlloVir, Inc.'s (NASDAQ:ALVR)) market cap declines to US$656m but insiders who sold US$11m stock were able to hedge their losses

Insiders at AlloVir, Inc. (NASDAQ:ALVR) sold US$11m worth of stock at an average price of US$28.92 a share over the past year, making the most of their investment. The company's market valuation decreased by US$118m after the stock price dropped 15% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

AlloVir Insider Transactions Over The Last Year

The Chief Scientific Officer, Ann Leen, made the biggest insider sale in the last 12 months. That single transaction was for US$3.4m worth of shares at a price of US$22.75 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$10.58). So it may not shed much light on insider confidence at current levels.

Insiders in AlloVir didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGS:ALVR Insider Trading Volume January 13th 2022

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insiders at AlloVir Have Sold Stock Recently

The last quarter saw substantial insider selling of AlloVir shares. Specifically, insiders ditched US$367k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

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. I reckon it's a good sign if insiders own a significant number of shares in the company. AlloVir insiders own 31% of the company, currently worth about US$201m 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 AlloVir Insider Transactions Indicate?

Insiders sold AlloVir shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing AlloVir. Be aware that AlloVir is showing 4 warning signs in our investment analysis, and 1 of those is concerning...

Of course AlloVir 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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