Insiders Who Sold US$626k Of Adaptive Biotechnologies Made The Right Call

While it’s been a great week for Adaptive Biotechnologies Corporation (NASDAQ:ADPT) shareholders after stock gained 28%, they should consider it with a grain of salt. Even though stock prices were relatively low, insiders elected to sell US$626k worth of stock in the last year, which could indicate some expected downturn.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Adaptive Biotechnologies

Adaptive Biotechnologies Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Co-Founder, Chad Robins, for US$167k worth of shares, at about US$3.44 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$5.14. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 1.9% of Chad Robins's holding.

Adaptive Biotechnologies insiders didn't buy any shares over the last year. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Does Adaptive Biotechnologies Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Adaptive Biotechnologies insiders own 3.9% of the company, worth about US$29m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Adaptive Biotechnologies Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Adaptive Biotechnologies shares in the last quarter. Our analysis of Adaptive Biotechnologies insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Adaptive Biotechnologies and understanding them should be part of your investment process.

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.

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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.