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Have Fate Therapeutics, Inc. (NASDAQ:FATE) Insiders Been Selling Their Stock?

Simply Wall St

We'd be surprised if Fate Therapeutics, Inc. (NASDAQ:FATE) shareholders haven't noticed that the Chief Scientific Officer, Daniel Shoemaker, recently sold US$169k worth of stock at US$14.29 per share. The eyebrow raising move amounted to a reduction of 13% in their holding.

View our latest analysis for Fate Therapeutics

The Last 12 Months Of Insider Transactions At Fate Therapeutics

Over the last year, we can see that the biggest insider sale was by the Founder, J. Wolchko, for US$303k worth of shares, at about US$14.44 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$14.68. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 17% of J. Wolchko's holding.

Over the last year, we note insiders sold 49217 shares worth US$705k. Insiders in Fate Therapeutics didn't buy any shares in the last year. 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!

NasdaqGM:FATE Recent Insider Trading, October 18th 2019

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Insider Ownership

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. Fate Therapeutics insiders own about US$16m worth of shares. That equates to 1.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Fate Therapeutics Insider Transactions Indicate?

Insiders haven't bought Fate Therapeutics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd think twice before buying! Of course, the future is what matters most. So if you are interested in Fate Therapeutics, you should check out this free report on analyst forecasts for the company.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.