Have Insiders Been Buying Neoleukin Therapeutics, Inc. (NASDAQ:NLTX) Shares This Year?
It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Neoleukin Therapeutics, Inc. (NASDAQ:NLTX), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, most countries require that the company discloses such transactions to the market.
We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
Check out our latest analysis for Neoleukin Therapeutics
Neoleukin Therapeutics Insider Transactions Over The Last Year
Notably, that recent purchase by Chief Executive Officer Jonathan Drachman was not the only time they bought Neoleukin Therapeutics shares this year. They previously made an even bigger purchase of US$782k worth of shares at a price of US$3.30 per share. That implies that an insider found the current price of US$3.34 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 Neoleukin Therapeutics share holders is that an insider was buying at near the current price. The only individual insider to buy over the last year was Jonathan Drachman.
You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Neoleukin Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Neoleukin Therapeutics Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Neoleukin Therapeutics insiders have about 2.8% of the stock, worth approximately US$2.2m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Neoleukin Therapeutics Insiders?
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 last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Neoleukin Therapeutics insiders are expecting a bright future. Of course, the future is what matters most. So if you are interested in Neoleukin Therapeutics, you should check out this free report on analyst forecasts for the company.
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, but not derivative transactions.
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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.
