From what we can see, insiders were net buyers in Sutro Biopharma, Inc.'s (NASDAQ:STRO ) during the past 12 months. That is, insiders acquired the stock in greater numbers than they sold it.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Sutro Biopharma
Over the last year, we can see that the biggest insider purchase was by CEO & Director William Newell for US$78k worth of shares, at about US$7.75 per share. That means that even when the share price was higher than US$5.17 (the recent price), an insider wanted to purchase shares. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. William Newell was the only individual insider to buy shares in the last twelve months.
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!
Sutro Biopharma is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Sutro Biopharma
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$2.9m worth of Sutro Biopharma stock, about 1.1% of the company. We consider this fairly low insider ownership.
What Might The Insider Transactions At Sutro Biopharma Tell Us?
It doesn't really mean much that no insider has traded Sutro Biopharma shares in the last quarter. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Sutro Biopharma stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Sutro Biopharma. To help with this, we've discovered 3 warning signs (1 is concerning!) that you ought to be aware of before buying any shares in Sutro Biopharma.
Of course Sutro Biopharma 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.
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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.
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