Advertisement

Trade Alert: The Co-CEO & Executive Chairman Of Summit Therapeutics Inc. (NASDAQ:SMMT), Robert Duggan, Has Just Spent US$92m Buying 140% More Shares

Summit Therapeutics Inc. (NASDAQ:SMMT) shareholders (or potential shareholders) will be happy to see that the Co-CEO & Executive Chairman, Robert Duggan, recently bought a whopping US$92m worth of stock, at a price of US$0.97. That purchase boosted their holding by 140%, which makes us wonder if the move was inspired by quietly confident deeply-felt optimism.

See our latest analysis for Summit Therapeutics

The Last 12 Months Of Insider Transactions At Summit Therapeutics

Notably, that recent purchase by Robert Duggan is the biggest insider purchase of Summit Therapeutics shares that we've seen in the last year. We do like to see buying, but this purchase was made at well below the current price of US$1.09. 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.

ADVERTISEMENT

While Summit Therapeutics 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!

insider-trading-volume
insider-trading-volume

Summit Therapeutics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Does Summit Therapeutics Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 35% of Summit Therapeutics shares, worth about US$77m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The Summit Therapeutics Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Summit Therapeutics shares, given these transactions (along with notable insider ownership of the company). While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example, Summit Therapeutics has 5 warning signs (and 3 which don't sit too well with us) we think you should know about.

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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here