Despite Hitting US$2.91, Nkarta Insiders Still Sold Too Soon

Even though Nkarta, Inc. (NASDAQ:NKTX) has fallen by 13% over the past week , insiders who sold US$238k worth of stock over the past year have had less luck. Given that the average selling price of US$8.34 is still lower than the current share price, insiders would probably have been better off keeping their shares.

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.

Check out our latest analysis for Nkarta

The Last 12 Months Of Insider Transactions At Nkarta

In the last twelve months, the biggest single sale by an insider was when the CEO & Director, Paul Hastings, sold US$85k worth of shares at a price of US$8.74 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.91. So it may not shed much light on insider confidence at current levels.

Nkarta insiders didn't buy any shares over the last year. 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!

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 Nkarta 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. Our information indicates that Nkarta insiders own about US$609k worth of shares. It's always possible we are missing something but from our data, it looks like insider ownership is minimal.

What Might The Insider Transactions At Nkarta Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Nkarta insider transactions leaves us unenthusiastic. And we're not picking up on high enough insider ownership to give us any comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Nkarta. At Simply Wall St, we've found that Nkarta has 5 warning signs (2 are significant!) that deserve your attention before going any further with your analysis.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

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

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.