Co-CEO & Executive Chairman of Summit Therapeutics Picks Up 2.5% More Stock

Those following along with Summit Therapeutics Inc. (NASDAQ:SMMT) will no doubt be intrigued by the recent purchase of shares by Robert Duggan, Co-CEO & Executive Chairman of the company, who spent a stonking US$262m on stock at an average price of US$18.74. While that only increased their holding size by 2.5%, it is still a big swing by our standards.

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The Last 12 Months Of Insider Transactions At Summit Therapeutics

In fact, the recent purchase by Robert Duggan was the biggest purchase of Summit Therapeutics shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to buy, at around the current price, which is US$19.46. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for Summit Therapeutics share holders is that insiders were buying at near the current price.

In the last twelve months Summit Therapeutics insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Check out our latest analysis for Summit Therapeutics

Summit Therapeutics is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Insider Ownership Of Summit Therapeutics

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. We usually like to see fairly high levels of insider ownership. Summit Therapeutics insiders own about US$12b worth of shares (which is 82% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Summit Therapeutics Insider Transactions Indicate?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Summit Therapeutics. Looks promising! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Summit Therapeutics. Every company has risks, and we've spotted 3 warning signs for Summit Therapeutics (of which 1 is a bit concerning!) you should know about.

Of course Summit 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 of direct interests only, but not derivative transactions or indirect interests.

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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.