Trade Alert: The Co-Founder Of Unity Biotechnology, Inc. (NASDAQ:UBX), Nathaniel David, Has Sold Some Shares Recently

Some Unity Biotechnology, Inc. (NASDAQ:UBX) shareholders may be a little concerned to see that the Co-Founder, Nathaniel David, recently sold a substantial US$8.9m worth of stock at a price of US$5.24 per share. That diminished their holding by a very significant 74%, which arguably implies a strong desire to reallocate capital.

See our latest analysis for Unity Biotechnology

The Last 12 Months Of Insider Transactions At Unity Biotechnology

In fact, the recent sale by Nathaniel David was the biggest sale of Unity Biotechnology shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$5.30). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was 74% of Nathaniel David's holding.

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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Unity Biotechnology Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Unity Biotechnology insiders own 8.1% of the company, worth about US$23m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Unity Biotechnology Insiders?

An insider hasn't bought Unity Biotechnology stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Unity Biotechnology. You'd be interested to know, that we found 3 warning signs for Unity Biotechnology and we suggest you have a look.

Of course Unity Biotechnology 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.

If you’re looking to trade Unity Biotechnology, open an account with the lowest-cost* platform trusted by professionals, Interactive Brokers. Their clients from over 200 countries and territories trade stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

This article by Simply Wall St is general in nature. 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.
^*Interactive Brokers Rated Lowest Cost Broker by StockBrokers.com Annual Online Review 2020

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