By selling US$56k worth of Clovis Oncology, Inc. (NASDAQ:CLVS) stock at an average sell price of US$5.99 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$68m over the past week after the stock price dropped 19%, although insiders were able to minimize their losses
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Clovis Oncology Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the insider, Thomas Harding, sold US$56k worth of shares at a price of US$6.00 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$2.19. So it may not shed much light on insider confidence at current levels. Thomas Harding was the only individual insider to sell over the last year.
Thomas Harding ditched 9.38k shares over the year. The average price per share was US$5.99. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
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. Based on our data, Clovis Oncology insiders have about 1.5% of the stock, worth approximately US$4.2m. We consider this fairly low insider ownership.
So What Do The Clovis Oncology Insider Transactions Indicate?
There haven't been any insider transactions in the last three months -- that doesn't mean much. The insider transactions at Clovis Oncology are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. 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. For instance, we've identified 5 warning signs for Clovis Oncology (1 can't be ignored) you should be aware of.
But note: Clovis Oncology 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, but not derivative transactions.
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