Market cap

As the market capitalization of Fate Therapeutics, Inc. (NASDAQ:FATE) fell $104 million, insiders who sold $4.2 million worth of stock were able to recoup their losses.

Insiders appear to have made the most of their holdings by selling $4.2 million worth of Fate Therapeutics, Inc. (NASDAQ:FATE) at an average selling price of $43.64 over the past year. After the stock price fell 5.3% last week, the company’s market value fell by $104 million, but insiders were able to mitigate their losses.

Although we would never suggest that investors base their decisions solely on what a company’s directors have done, logic dictates that you pay attention to whether insiders are buying or selling shares.

Fate Therapeutics insider trades over the past year

In the past twelve months, the largest single insider sale occurred when founder J. Wolchko sold $1.6 million worth of stock at $47.72 per share. While we generally don’t like to see insider selling, it’s more of a concern if the selling takes place at a lower price. The good news is that this big sell was well above the current price of US$19.29. So this may not tell us anything about what insiders think of the current stock price.

Last year, Fate Therapeutics insiders did not buy any shares of the company. You can see a visual representation of insider trading (by companies and individuals) over the past 12 months, below. If you click on the chart, you can see all individual trades including stock price, individual and date!

NasdaqGM:FATE Insider Trading Volume October 22, 2022

I’d like Fate Therapeutics better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.

Fate Therapeutics insiders recently sold shares

Over the past three months, we have seen significant insider selling at Fate Therapeutics. Specifically, CFO Edward Dulac gave up US$153,000 worth of stock around this time, and we saw no buys. In light of this, it’s hard to say that all insiders think stocks are a good deal.

Does Fate Therapeutics boast of high insider ownership?

I like to look at how many shares insiders own in a company, to help me get a sense of how aligned they are with insiders. We generally like to see fairly high levels of insider ownership. Fate Therapeutics insiders own approximately $24 million in stock. This equates to 1.3% of the business. While this is a high but not exceptional level of insider ownership, it suffices to indicate some alignment between management and small shareholders.

What could insider trading at Fate Therapeutics tell us?

An insider recently sold shares, but did not buy. Looking at the last twelve months, our data shows no insider buying. Insiders hold shares, but we remain quite cautious, given the history of sales. We are in no rush to buy! So these insider trades can help us build a thesis on the stock, but it’s also helpful to know the risks this company faces. For example, Fate Therapeutics has 3 warning signs (and 1 that doesn’t sit well with us) we think you should know.

Sure, you might find a fantastic investment by looking elsewhere. So take a look at this free list of interesting companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.

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