Don't Ignore The Insider Selling In Cullinan Therapeutics

Investors may wish to note that the President of Cullinan Therapeutics, Inc., Nadim Ahmed, recently netted US$100k from selling stock, receiving an average price of US$11.87. It wasn't a huge sale, but it did reduce their holding by 16%. This does not instill confidence.

See our latest analysis for Cullinan Therapeutics

The Last 12 Months Of Insider Transactions At Cullinan Therapeutics

Notably, that recent sale by Nadim Ahmed is the biggest insider sale of Cullinan Therapeutics shares that we've seen in the last year. That means that an insider was selling shares at below the current price (US$12.02). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 16% of Nadim Ahmed's stake.

Cullinan 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. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership Of Cullinan Therapeutics

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 4.5% of Cullinan Therapeutics shares, worth about US$31m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Cullinan Therapeutics Insiders?

Insiders haven't bought Cullinan Therapeutics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Cullinan Therapeutics has 5 warning signs (and 2 which can't be ignored) we think you should know about.

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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.