Those following along with NantKwest, Inc. (NASDAQ:NK) will no doubt be intrigued by the recent purchase of shares by Patrick Soon-Shiong, Executive Chairman & CEO of the company, who spent a stonking US$45m on stock at an average price of US$12.12. While that only increased their holding size by 6.1%, it is still a big swing by our standards.
NantKwest Insider Transactions Over The Last Year
Notably, that recent purchase by Patrick Soon-Shiong is the biggest insider purchase of NantKwest shares that we've seen in the last year. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$11.74). Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. The only individual insider to buy over the last year was Patrick Soon-Shiong.
You can see the insider transactions (by 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.
Insider Ownership of NantKwest
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. NantKwest insiders own about US$754m worth of shares (which is 60% of the company). 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 NantKwest Insider Transactions Indicate?
It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about NantKwest. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing NantKwest. To that end, you should learn about the 6 warning signs we've spotted with NantKwest (including 3 which shouldn't be ignored).
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.
This article by Simply Wall St is general in nature. 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.
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