This Company's Co-CEOs Just Bought More Shares. Should You?
Nobody has more information about a company than its insiders, especially its executive management team. That's why when one of them buys more shares, it sometimes gives individual investors insights into the company's prospects. If those with the most knowledge think it's worth loading up on the stock, maybe other investors do the same -- or so the argument goes.That brings us to Summit Therapeutics (NASDAQ: SMMT), a clinical-stage biotech whose co-chief executive officers recently bought more shares of the company they lead. Should other investors follow suit? Let's find out.On April 8, Summit Therapeutics' co-CEOs, Robert Duggan and Maky Zanganeh, each exercised warrants, financial instruments that grant their holders the right (but not the obligation) to acquire a company's shares at a predetermined price before a particular date. Duggan and Zanganeh's warrants wouldn't have expired until December 2029, but they both chose to go ahead and buy almost 4 million shares (each) of the company they lead for $1.58 per share.Continue reading
Nobody has more information about a company than its insiders, especially its executive management team. That's why when one of them buys more shares, it sometimes gives individual investors insights into the company's prospects. If those with the most knowledge think it's worth loading up on the stock, maybe other investors do the same -- or so the argument goes.
That brings us to Summit Therapeutics (NASDAQ: SMMT), a clinical-stage biotech whose co-chief executive officers recently bought more shares of the company they lead. Should other investors follow suit? Let's find out.
On April 8, Summit Therapeutics' co-CEOs, Robert Duggan and Maky Zanganeh, each exercised warrants, financial instruments that grant their holders the right (but not the obligation) to acquire a company's shares at a predetermined price before a particular date. Duggan and Zanganeh's warrants wouldn't have expired until December 2029, but they both chose to go ahead and buy almost 4 million shares (each) of the company they lead for $1.58 per share.