Senior Vice President and Chief Commercial Officer Kristin Yarema just bought an additional 165% shares in Atara Biotherapeutics, Inc. (NASDAQ: ATRA)
Those who follow with Atara Biotherapeutics, Inc. (NASDAQ: ATRA) will no doubt be intrigued by the recent share purchase by Kristin Yarema, SVP & Chief Commercial Officer of the company, who spent US $ 500,000 on shares at an average price of US $ 14.57. This purchase increased their stake by 165%, which makes us wonder if the move was inspired by deeply confident optimism.
The last 12 months of insider trading at Atara Biotherapeutics
Notably, this recent purchase by Kristin Yarema is the biggest insider buy of Atara Biotherapeutics shares we’ve seen in the past year. This implies that an insider found the current price of US $ 15.36 per share attractive. Of course, maybe they changed their mind. But it does suggest that they are optimistic. We always love to see insider buys, but it’s worth noting if those buys were made at a price much lower than today’s share price as the discount to value may have been reduced with increasing price. The good news for Atara Biotherapeutics shareholders is that an insider was buying at a price close to the current price. The only individual insider to buy over the past year was Kristin Yarema.
You can see insider trading (by companies and individuals) over the past year represented in the graph below. If you click on the chart, you can see all of the individual trades including the stock price, individual and date!
NasdaqGS: ATRA Insider Trading Volume June 18, 2021
There are always a lot of stocks that insiders buy. So if it suits your style, you can check each stock one by one or you can take a look at this free list of companies. (Hint: insiders bought them).
Does Atara Biotherapeutics have strong insider ownership?
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. We generally like to see fairly high levels of insider ownership. It appears that Atara Biotherapeutics insiders own 1.1% of the company, worth around US $ 14 million. This level of insider ownership is good but just short of being particularly noteworthy. It certainly suggests a reasonable degree of alignment.
So what does this data suggest about Atara Biotherapeutics insiders?
It’s certainly positive to see the recent insider buy. And longer-term insider trading gives us confidence as well. But we don’t feel the same about the business taking losses. When combined with notable insider ownership, these factors suggest that Atara Biotherapeutics insiders are well aligned and may think the share price is too low. So these insider trading can help us build a thesis on the stock, but it’s also worth knowing the risks this company faces. During our analysis, we found that Atara Biotherapeutics has 3 warning signs and it would be unwise to ignore them.
But beware : Atara Biotherapeutics may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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