NASDAQ:STRO).” data-reactid=”28″ type=”text”>We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Sutro Biopharma, Inc. (NASDAQ:STRO).
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, such insiders must disclose their trading activities, and not trade on inside information.
study found that ‘insider purchases earn abnormal returns of more than 6% per year’.” data-reactid=”31″ type=”text”>Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year’.
Sutro Biopharma Insider Transactions Over The Last Year
The CEO & Director William Newell made the biggest insider purchase in the last 12 months. That single transaction was for US$500k worth of shares at a price of US$7.75 each. We do like to see buying, but this purchase was made at well below the current price of US$13.00. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn’t tell us much about what they think of current prices.
While Sutro Biopharma insiders bought shares during the last year, they didn’t sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
list of growing companies with recent insider purchasing, could be just the ticket.” data-reactid=”52″ type=”text”>Sutro Biopharma is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it’s a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own US$3.5m worth of Sutro Biopharma stock, about 0.8% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Sutro Biopharma Insiders?
4 warning signs for Sutro Biopharma you should be aware of, and 2 of these are concerning.” data-reactid=”56″ type=”text”>The fact that there have been no Sutro Biopharma insider transactions recently certainly doesn’t bother us. But insiders have shown more of an appetite for the stock, over the last year. 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. Case in point: We’ve spotted 4 warning signs for Sutro Biopharma you should be aware of, and 2 of these are concerning.
list of interesting companies, that have HIGH return on equity and low debt.” data-reactid=”57″ type=”text”>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.
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.