Fate Therapeutics Drops To US$2.81, Yet Insiders May Have Sold Too Early

Even though Fate Therapeutics, Inc. (NASDAQ:FATE) has fallen by 13% over the past week , insiders who sold US$190k worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$4.37 is still lower than the current share price.

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.

View our latest analysis for Fate Therapeutics

The Last 12 Months Of Insider Transactions At Fate Therapeutics

In the last twelve months, the biggest single sale by an insider was when the Founder, J. Wolchko, sold US$63k worth of shares at a price of US$4.37 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$2.81. So it may not shed much light on insider confidence at current levels.

Fate Therapeutics insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Does Fate Therapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.7% of Fate Therapeutics shares, worth about US$5.9m, according to our data. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

What Might The Insider Transactions At Fate Therapeutics Tell Us?

The fact that there have been no Fate Therapeutics insider transactions recently certainly doesn't bother us. The insider transactions at Fate Therapeutics are not inspiring us to buy. And we're not picking up on high enough insider ownership to give us any comfort. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 3 warning signs for Fate Therapeutics you should be aware of, and 1 of them makes us a bit uncomfortable.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.