Have Insiders Sold Clinuvel Pharmaceuticals Limited (ASX:CUV) Shares Recently?

Some Clinuvel Pharmaceuticals Limited (ASX:CUV) shareholders may be a little concerned to see that the CEO, MD & Director, Philippe Wolgen, recently sold a substantial AU$2.6m worth of stock at a price of AU$24.66 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 3.0%.

Check out our latest analysis for Clinuvel Pharmaceuticals

Clinuvel Pharmaceuticals Insider Transactions Over The Last Year

Notably, that recent sale by Philippe Wolgen is the biggest insider sale of Clinuvel Pharmaceuticals shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$22.78. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid AU$24k for 1.09k shares. But insiders sold 104.00k shares worth AU$2.6m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Clinuvel Pharmaceuticals Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Clinuvel Pharmaceuticals insiders own 15% of the company, currently worth about AU$169m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Clinuvel Pharmaceuticals Tell Us?

Unfortunately, there has been more insider selling of Clinuvel Pharmaceuticals stock, than buying, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Clinuvel Pharmaceuticals is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Clinuvel Pharmaceuticals you should be aware of, and 1 of these is concerning.

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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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This article by Simply Wall St is general in nature. 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.
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