Insider Buying: Jatin Shah Just Spent US$200k On Karyopharm Therapeutics Inc. (NASDAQ:KPTI) Shares

By
Simply Wall St
Published
May 12, 2021
NasdaqGS:KPTI

Potential Karyopharm Therapeutics Inc. (NASDAQ:KPTI) shareholders may wish to note that insider Jatin Shah recently bought US$200k worth of stock, paying US$8.60 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 44%.

See our latest analysis for Karyopharm Therapeutics

Karyopharm Therapeutics Insider Transactions Over The Last Year

In fact, the recent purchase by Jatin Shah was the biggest purchase of Karyopharm Therapeutics shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$8.84. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Karyopharm Therapeutics insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 34.75k shares for US$340k. But they sold 45.00k shares for US$683k. Over the last year we saw more insider selling of Karyopharm Therapeutics shares, than buying. They sold for an average price of about US$15.17. It is certainly not great to see that insiders have sold shares in the company. However, we do note that the average sale price was significantly higher than the current share price (which is US$8.84). 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:KPTI Insider Trading Volume May 13th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Karyopharm Therapeutics insiders own 2.0% of the company, worth about US$13m. 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 Karyopharm Therapeutics Insiders?

Unfortunately, there has been more insider selling of Karyopharm Therapeutics stock, than buying, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! While we like knowing 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. To help with this, we've discovered 4 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Karyopharm Therapeutics.

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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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