Even though Sutro Biopharma, Inc. (NASDAQ:STRO) has fallen by 20% over the past week , insiders who sold US$126k worth of stock over the past year have had less luck. Insiders would probably have been better off holding on to their shares given that the average selling price of US$4.66 is still lower than the current share price.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Sutro Biopharma Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Brunilda Shtylla, sold US$73k worth of shares at a price of US$4.71 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$3.55. So it may not tell us anything about how insiders feel about the current share price. Brunilda Shtylla was the only individual insider to sell over the last year.
Brunilda Shtylla divested 27.04k shares over the last 12 months at an average price of US$4.66. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Sutro Biopharma better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Sutro Biopharma insiders own 1.4% of the company, worth about US$3.0m. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Sutro Biopharma Insiders?
There haven't been any insider transactions in the last three months -- that doesn't mean much. Our analysis of Sutro Biopharma insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 3 warning signs for Sutro Biopharma you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 of direct interests only, but not derivative transactions or indirect interests.
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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.