Nektar Therapeutics' (NASDAQ:NKTR)) market cap declines to US$2.0b but insiders who sold US$3.5m stock were able to hedge their losses

By
Simply Wall St
Published
February 18, 2022
NasdaqGS:NKTR
Source: Shutterstock

Over the past year, insiders sold US$3.5m worth of Nektar Therapeutics (NASDAQ:NKTR) stock at an average price of US$15.04 per share allowing them to get the most out of their money. The company's market valuation decreased by US$66m after the stock price dropped 3.3% over the past week, but insiders were spared from painful losses.

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.

Check out our latest analysis for Nektar Therapeutics

Nektar Therapeutics Insider Transactions Over The Last Year

The Chief Research & Development Officer, Jonathan Zalevsky, made the biggest insider sale in the last 12 months. That single transaction was for US$569k worth of shares at a price of US$18.30 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The silver lining is that this sell-down took place above the latest price (US$10.69). So it may not tell us anything about how insiders feel about the current share price.

Nektar 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqGS:NKTR Insider Trading Volume February 18th 2022

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.1% of Nektar Therapeutics shares, worth about US$21m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Nektar Therapeutics Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Nektar Therapeutics insider transactions leaves us cautious. But we do like the fact that insiders own a fair chunk of the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Nektar Therapeutics.

Of course Nektar Therapeutics may not be the best stock to buy. So you may wish to see this free collection of high quality 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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