Stock Analysis

Have Clarkson Insiders Been Selling Stock?

LSE:CKN
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We wouldn't blame Clarkson PLC (LON:CKN) shareholders if they were a little worried about the fact that Andi Case, the CEO & Executive Director recently netted about UK£1.2m selling shares at an average price of UK£40.75. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 4.7%.

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The Last 12 Months Of Insider Transactions At Clarkson

In fact, the recent sale by Andi Case was the biggest sale of Clarkson shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of UK£40.35. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

Clarkson insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
LSE:CKN Insider Trading Volume April 20th 2024

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Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Clarkson insiders own about UK£29m worth of shares. That equates to 2.3% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Clarkson Tell Us?

Insiders haven't bought Clarkson stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Clarkson is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. 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. Case in point: We've spotted 3 warning signs for Clarkson you should be aware of, and 1 of these shouldn't be ignored.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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 of direct interests only, but not derivative transactions or indirect interests.

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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.