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Who Has Been Selling NantKwest, Inc. (NASDAQ:NK) Shares?

Simply Wall St

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 shareholders might well want to know whether insiders have been buying or selling shares in NantKwest, Inc. (NASDAQ:NK).

What Is Insider Buying?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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 NantKwest

The Last 12 Months Of Insider Transactions At NantKwest

Over the last year, we can see that the biggest insider sale was by the Vice Chairman, Steven Gorlin, for US$450k worth of shares, at about US$2.43 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$1.21. So it may not shed much light on insider confidence at current levels. Steven Gorlin was the only individual insider to sell shares in the last twelve months.

Steven Gorlin ditched 518k shares over the year. The average price per share was US$1.94. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NasdaqGS:NK Recent Insider Trading, August 27th 2019

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership of NantKwest

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. NantKwest insiders own about US$78m worth of shares (which is 65% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At NantKwest Tell Us?

It doesn't really mean much that no insider has traded NantKwest shares in the last quarter. It's great to see high levels of insider ownership, but looking back at the last year, we don't gain confidence from the NantKwest insiders selling. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for NantKwest.

But note: NantKwest may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.