Last week, Atara Biotherapeutics, Inc. (NASDAQ:ATRA) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 6.2% last week, resulting in a US$77m increase in the company's market worth. As a result, their original purchase of US$500k worth of stock is now worth US$511k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Atara Biotherapeutics
The SVP & Chief Commercial Officer Kristin Yarema made the biggest insider purchase in the last 12 months. That single transaction was for US$500k worth of shares at a price of US$14.58 each. That means that an insider was happy to buy shares at around the current price of US$14.86. That means they have been optimistic about the company in the past, though they may have changed their mind. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Atara Biotherapeutics share holders is that an insider was buying at near the current price. Kristin Yarema was the only individual insider to buy shares in the last twelve months.
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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
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. Insiders own 0.7% of Atara Biotherapeutics shares, worth about US$9.6m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.
What Might The Insider Transactions At Atara Biotherapeutics Tell Us?
It doesn't really mean much that no insider has traded Atara Biotherapeutics shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. The transactions are fine but it'd be more encouraging if Atara Biotherapeutics insiders bought more shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Atara Biotherapeutics you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.
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