Fate Therapeutics Falls To US$3.41, But Insiders Sold At Lower Price

Even though Fate Therapeutics, Inc. (NASDAQ:FATE) has fallen by 12% over the past week , insiders who sold US$222k worth of stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of US$4.27 is still below 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, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Fate Therapeutics

The Last 12 Months Of Insider Transactions At Fate Therapeutics

Over the last year, we can see that the biggest insider sale was by the Founder, J. Wolchko, for US$63k worth of shares, at about US$4.37 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$3.41. So it may not shed much light on insider confidence at current levels.

In the last year Fate Therapeutics insiders didn't buy any company stock. 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!

I will like Fate Therapeutics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Fate 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. Our data indicates that Fate Therapeutics insiders own about US$6.0m worth of shares (which is 1.5% of the company). We do generally prefer see higher levels of insider ownership.

So What Does This Data Suggest About Fate Therapeutics Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Fate Therapeutics insider transactions leaves us unenthusiastic. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Fate Therapeutics. When we did our research, we found 3 warning signs for Fate Therapeutics (1 is a bit unpleasant!) that we believe deserve your full attention.

But note: Fate 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 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com