Potential Innventure, Inc. (NASDAQ:INV) shareholders may wish to note that the Executive Chairman, Michael Otworth, recently bought US$349k worth of stock, paying US$1.51 for each share. Although the purchase only increased their holding by 6.7%, it is still a solid purchase in our view.

The Last 12 Months Of Insider Transactions At Innventure

Over the last year, we can see that the biggest insider sale was by the Chief Strategy Officer, John Scott, for US$2.3m worth of shares, at about US$5.13 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$1.51). So it may not tell us anything about how insiders feel about the current share price. John Scott was the only individual insider to sell shares in the last twelve months.

In the last twelve months insiders purchased 594.79k shares for US$1.1m. On the other hand they divested 452.67k shares, for US$2.3m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Innventure better if I see some big insider buys.

Does Innventure Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Innventure insiders own 18% of the company, worth about US$23m. 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 Do The Innventure Insider Transactions Indicate?

It is good to see recent purchasing. But we can't say the same for the transactions over the last 12 months. The more recent transactions are a positive, but Innventure insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. Overall they seem reasonably aligned. 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.

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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.

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.