Nkarta Insiders Make Handsome Sum Selling Stock At US$2.06 Per Share
Although Nkarta, Inc. (NASDAQ:NKTX) shareholders have enjoyed a great week with the stock up 22%, insiders who sold stock over the past year haven't fared as well. The value of their investment would have been higher had they waited to sell their stock.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Nkarta
In fact, the recent sale by Paul Hastings was the biggest sale of Nkarta shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$2.40). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 14% of Paul Hastings's holding.
Insiders in Nkarta didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
See our latest analysis for Nkarta
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At Nkarta Have Sold Stock Recently
The last quarter saw substantial insider selling of Nkarta shares. In total, insiders sold US$66k 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 Of Nkarta
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data isn't picking up on much insider ownership at Nkarta, though insiders do hold about US$770k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.
So What Do The Nkarta Insider Transactions Indicate?
Insiders haven't bought Nkarta stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. When you consider that most companies have higher levels of insider ownership, we're a little wary. So we're not rushing to buy, to say the least. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Nkarta (including 2 which are significant).
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.