As Unity Biotechnology, Inc.'s (NASDAQ:UBX)) market cap dropped by US$27m, insiders who sold US$8.9m worth of stock were able to offset their losses

By
Simply Wall St
Published
August 16, 2021
NasdaqGS:UBX
Source: Shutterstock

Insiders seem to have made the most of their holdings by selling US$8.9m worth of Unity Biotechnology, Inc. (NASDAQ:UBX) stock at an average sell price of US$5.24 during the past year. The company’s market cap plunged by US$27m after price dropped by 13% last week but insiders were able to limit their loss to an extent.

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.

See our latest analysis for Unity Biotechnology

The Last 12 Months Of Insider Transactions At Unity Biotechnology

The Co-Founder & Executive Director, Nathaniel David, made the biggest insider sale in the last 12 months. That single transaction was for US$8.9m worth of shares at a price of US$5.24 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The silver lining is that this sell-down took place above the latest price (US$3.31). So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Nathaniel David.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
NasdaqGS:UBX Insider Trading Volume August 17th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Unity Biotechnology

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. Insiders own 3.6% of Unity Biotechnology shares, worth about US$6.5m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Unity Biotechnology Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Unity Biotechnology insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. While we like knowing 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. To help with this, we've discovered 5 warning signs (2 are significant!) that you ought to be aware of before buying any shares in Unity Biotechnology.

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, but not derivative transactions.

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