Insiders Sold Nektar Therapeutics At US$1.06, Meanwhile Stock Sits Near US$0.62

Nektar Therapeutics' (NASDAQ:NKTR) stock price has dropped 21% in the previous week, but insiders who sold US$389k in 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$1.06 is still below the current share price.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

Our free stock report includes 3 warning signs investors should be aware of before investing in Nektar Therapeutics. Read for free now.

Nektar Therapeutics Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the CEO, President & Director, Howard Robin, sold US$132k worth of shares at a price of US$1.01 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$0.62. So it is hard to draw any strong conclusion from it.

Insiders in Nektar Therapeutics didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Nektar Therapeutics

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At Nektar Therapeutics Have Sold Stock Recently

We have seen a bit of insider selling at Nektar Therapeutics, over the last three months. Insiders sold just US$46k worth of shares in that time. It's not great to see insider selling, nor the lack of recent buyers. But the amount sold isn't enough for us to put any weight on it.

Insider Ownership

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$1.5m worth of Nektar Therapeutics stock, about 1.3% of the company. I generally like to see higher levels of ownership.

So What Do The Nektar Therapeutics Insider Transactions Indicate?

Our data shows a little more insider selling, but no insider buying, in the last three months. But given the selling was modest, we're not worried. Recent sales exacerbate our caution arising from analysis of Nektar Therapeutics insider transactions. And we're not picking up on high enough insider ownership to give us any comfort. 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. Case in point: We've spotted 3 warning signs for Nektar Therapeutics you should be aware of, and 1 of them is potentially serious.

But note: Nektar 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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