We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Sangamo Therapeutics, Inc. (NASDAQ:SGMO), you may well want to know whether insiders have been buying or selling.
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
The Last 12 Months Of Insider Transactions At Sangamo Therapeutics
Director Roger Jeffs made the biggest insider purchase in the last 12 months. That single transaction was for US$100k worth of shares at a price of US$13.56 each. That means that even when the share price was higher, an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. That purchase may suggest an expectation of positive returns over the long term.
In the last twelve months insiders paid US$146k for 11.41k shares purchased. In total, Sangamo Therapeutics insiders bought more than they sold over the last year. They paid about US$12.76 on average. This is nice to see since it implies that insiders might see value around current prices (around US$11.74). You can see the insider transactions 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Sangamo Therapeutics Insiders Bought Stock Recently
Over the last three months, we’ve seen a bit of insider buying at Sangamo Therapeutics. Chair of the Board H. Parker bought US$18k worth of shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership of Sangamo 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. I reckon it’s a good sign if insiders own a significant number of shares in the company. Based on our data, Sangamo Therapeutics insiders have about 0.2% of the stock, worth approximately US$2.6m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Sangamo Therapeutics Tell Us?
We note a that there has been a tad more insider buying than selling, recently. But overall the difference isn’t worth writing home about. On a brighter note, the transactions over the last year are encouraging. We’d like to see bigger individual holdings. However, we don’t see anything to make us think Sangamo Therapeutics insiders are doubting the company. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org.