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Verve Therapeutics Hits $1.2 Billion Market Cap, Benefiting Insider Stock Buying

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Verve Therapeutics, Inc. (NASDAQ:VERV) insiders who bought stocks in the past year were handsomely rewarded last week. The stock rose 6.3%, driving the company’s market capitalization up $70 million. In other words, the initial acquisition of US$207,000 is now worth US$271,000.

While we would never suggest that investors base their decisions solely on what a company’s directors have done, we think it makes perfect sense to keep tabs on what insiders are doing.

Check out our latest analysis for Verve Therapeutics

The last 12 months of insider trading at Verve Therapeutics

Over the past year, we can see that the biggest insider buy was made by Independent Chairman of the Board, Burt Adelman, for US$122,000 worth of stock, at around US$12.15. per share. While we like to see insider buying, we note that this big buy was significantly below the recent price of US$19.35. Because it occurred at a lower valuation, that tells us little about whether insiders might find today’s price attractive.

Burt Adelman bought a total of 14,000 shares during the year at an average price of $14.79. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!

volume-of-insider-trading
NasdaqGS: VERV insider trading volume as of January 1, 2023

Verve Therapeutics isn’t the only stock insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider buying, might be just the ticket.

Verve Therapeutics insiders sell the stock

We’ve seen quite a bit of insider selling at Verve Therapeutics over the past three months. Chief Scientific and Medical Officer Andrew Bellinger reported just US$20,000 worth of sell shares during this period. Neither the lack of buying nor the presence of selling is encouraging. But the volume sold is so low that we really don’t mind.

Does Verve Therapeutics boast of high insider ownership?

For an ordinary shareholder, it is worth checking how many shares are held by company insiders. High insider participation often makes company management more concerned with the interests of shareholders. Insiders own 8.2% of Verve Therapeutics shares, worth approximately $98 million. We have certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest an alignment between insiders and other shareholders.

So what does this data suggest about Verve Therapeutics insiders?

Although there has been no insider buying in the past three months, there have been some selling. But given that the sale was modest, we are not worried. But insiders have shown more appetite for the stock over the past year. Overall, we see nothing to suggest Verve Therapeutics insiders doubt the company, and they own stock. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example, Verve Therapeutics has 5 warning signs (and 2 that make us uncomfortable) that we think you should know about.

Sure Verve Therapeutics may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

What are the risks and opportunities for Therapeutic Verve?

Verve Therapeutics, Inc., a gene drug company, engages in the development of gene editing drugs for patients to treat cardiovascular disease.

See the full analysis

Awards

  • Revenues are expected to increase by 74.27% per year

Risks

  • Revenues are expected to decline an average of 15.6% per year over the next 3 years

  • Generates less than $1 million in revenue ($929,000)

  • Shareholders have been diluted over the past year

  • Volatile share price over the past 3 months

  • Currently unprofitable and not expected to become profitable within the next 3 years

See all risks and rewards

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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