Fate Therapeutics Insiders US$207k Short Of Breakeven On Stock Purchase
Insiders who bought US$698.1k worth of Fate Therapeutics, Inc. (NASDAQ:FATE) stock in the last year have seen some of their losses recouped as the stock gained 18% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling US$207k.
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.
View our latest analysis for Fate Therapeutics
The Last 12 Months Of Insider Transactions At Fate Therapeutics
The Independent Vice Chairman of the Board John Mendlein made the biggest insider purchase in the last 12 months. That single transaction was for US$698k worth of shares at a price of US$5.67 each. That means that an insider was happy to buy shares at above the current price of US$3.94. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. John Mendlein 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. By clicking on the graph below, you can see the precise details of each insider transaction!
Fate Therapeutics is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Fate Therapeutics
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. From our data, it seems that Fate Therapeutics insiders own 1.6% of the company, worth about US$5.8m. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Fate Therapeutics Tell Us?
The fact that there have been no Fate Therapeutics insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Fate Therapeutics stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fate Therapeutics. Be aware that Fate Therapeutics is showing 3 warning signs in our investment analysis, and 1 of those 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 of direct interests only, but not derivative transactions or indirect interests.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
