Summit Therapeutics Insiders Up US$558m On US$517m Investment
Insiders who bought Summit Therapeutics Inc. (NASDAQ:SMMT) stock lover the last 12 months are probably not as affected by last week’s 11% loss. After taking the recent loss into consideration, the US$517m worth of stock they bought is now worth US$1.1b, indicating that their investment yielded a positive return.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
See our latest analysis for Summit Therapeutics
The Last 12 Months Of Insider Transactions At Summit Therapeutics
In the last twelve months, the biggest single purchase by an insider was when CEO & Executive Chairman Robert Duggan bought US$395m worth of shares at a price of US$1.05 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$2.15. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Summit Therapeutics insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Summit 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Summit Therapeutics insiders own 82% of the company, currently worth about US$1.2b based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
What Might The Insider Transactions At Summit Therapeutics Tell Us?
The fact that there have been no Summit Therapeutics insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. With high insider ownership and encouraging transactions, it seems like Summit Therapeutics insiders think the business has merit. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Summit Therapeutics. You'd be interested to know, that we found 4 warning signs for Summit Therapeutics and we suggest you have a look.
But note: Summit Therapeutics 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.
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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.
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