Yahoo Finance Kineta Insider Purchases Yet To Pay Off Regardless Of Recent Strength
Insiders who bought US$487.3k worth of Kineta, Inc. (NASDAQ:KA) stock in the last year recovered part of their losses as the stock rose by 22% last week. However, the purchase is proving to be a costly gamble, since losses made by insiders have totalled US$164k since the time of purchase.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Kineta
The Last 12 Months Of Insider Transactions At Kineta
In the last twelve months, the biggest single purchase by an insider was when Independent Director Marion Foote bought US$250k worth of shares at a price of US$11.55 per share. That means that even when the share price was higher than US$4.18 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid US$487k for 77.30k shares. But insiders sold 6.11k shares worth US$26k. Overall, Kineta insiders were net buyers during the last year. They paid about US$6.30 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders At Kineta Have Bought Stock Recently
It's good to see that Kineta insiders have made notable investments in the company's shares. Overall, six insiders shelled out US$79k for shares in the company -- and none sold. This makes one think the business has some good points.
Does Kineta Boast High 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. We usually like to see fairly high levels of insider ownership. Kineta insiders own about US$11m worth of shares. That equates to 26% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Kineta Insider Transactions Indicate?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Kineta shares, given these transactions (along with notable insider ownership of the company). 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. When we did our research, we found 4 warning signs for Kineta (2 are a bit concerning!) that we believe deserve your full attention.
But note: Kineta may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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