Last week, Corvus Pharmaceuticals, Inc. (NASDAQ:CRVS) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 27% last week, resulting in a US$96m increase in the company's market worth, implying a 325% gain on their initial purchase. As a result, the stock they originally bought for US$1.03m is now worth US$4.39m.

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

See our latest analysis for Corvus Pharmaceuticals

The Last 12 Months Of Insider Transactions At Corvus Pharmaceuticals

The Co-Founder Richard Miller made the biggest insider purchase in the last 12 months. That single transaction was for US$1m worth of shares at a price of US$1.73 each. Even though the purchase was made at a significantly lower price than the recent price (US$7.35), 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.

Corvus Pharmaceuticals insiders may have bought shares in the last year, but they didn't sell any. 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!

Corvus Pharmaceuticals is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Corvus Pharmaceuticals

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 3.5% of Corvus Pharmaceuticals shares, worth about US$16m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Corvus Pharmaceuticals Insiders?

The fact that there have been no Corvus Pharmaceuticals insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Corvus Pharmaceuticals insiders are doubting the company, and they do own shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Corvus Pharmaceuticals. When we did our research, we found 5 warning signs for Corvus Pharmaceuticals (2 are significant!) that we believe deserve your full attention.

But note: Corvus Pharmaceuticals 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.

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.