This Insider Has Just Sold Shares In Revolution Medicines
Some Revolution Medicines, Inc. (NASDAQ:RVMD) shareholders may be a little concerned to see that the CEO, President & Chairman, Mark Goldsmith, recently sold a substantial US$2.8m worth of stock at a price of US$199 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.7%.
Revolution Medicines Insider Transactions Over The Last Year
Notably, that recent sale by Mark Goldsmith is the biggest insider sale of Revolution Medicines shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$191. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Revolution Medicines insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Check out our latest analysis for Revolution Medicines
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Insider Ownership Of Revolution Medicines
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Revolution Medicines insiders own 2.2% of the company, worth about US$900m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Revolution Medicines Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. 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 Revolution Medicines. Case in point: We've spotted 2 warning signs for Revolution Medicines you should be aware of, and 1 of these is a bit unpleasant.
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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.