Stock Analysis

After a 17% dip, insiders are undoubtedly glad they sold Adaptimmune Therapeutics plc (NASDAQ:ADAP)

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NasdaqGS:ADAP
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Insiders seem to have made the most of their holdings by selling US$287k worth of Adaptimmune Therapeutics plc (NASDAQ:ADAP) stock at an average sell price of US$2.96 during the past year. The company’s market cap plunged by US$61m after price dropped by 17% last week but insiders were able to limit their loss to an extent.

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.

Our analysis indicates that ADAP is potentially overvalued!

Adaptimmune Therapeutics Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the CEO, Principal Accounting Officer & Director, Adrian G. Rawcliffe, for US$62k worth of shares, at about US$3.56 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$1.80. So it may not tell us anything about how insiders feel about the current share price.

Adaptimmune Therapeutics insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and 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!

insider-trading-volume
NasdaqGS:ADAP Insider Trading Volume December 8th 2022

I will like Adaptimmune Therapeutics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Adaptimmune Therapeutics

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$3.7m worth of Adaptimmune Therapeutics stock, about 1.3% of the company. We consider this fairly low insider ownership.

What Might The Insider Transactions At Adaptimmune Therapeutics Tell Us?

The fact that there have been no Adaptimmune Therapeutics insider transactions recently certainly doesn't bother us. The insider transactions at Adaptimmune Therapeutics are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Adaptimmune Therapeutics. Be aware that Adaptimmune Therapeutics is showing 4 warning signs in our investment analysis, and 1 of those is a bit unpleasant...

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.

What are the risks and opportunities for Adaptimmune Therapeutics?

Adaptimmune Therapeutics plc, a clinical-stage biopharmaceutical company, focuses on providing novel cell therapies primarily to patients with solid tumors in the United States and the United Kingdom.

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Rewards

  • Revenue is forecast to grow 42.71% per year

Risks

  • Earnings are forecast to decline by an average of 12.2% per year for the next 3 years

  • Shareholders have been diluted in the past year

  • Significant insider selling over the past 3 months

  • Volatile share price over the past 3 months

  • Currently unprofitable and not forecast to become profitable over the next 3 years

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Adaptimmune Therapeutics

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