Don't Ignore The Fact That This Insider Just Sold Some Shares In Clarivate Plc (NYSE:CLVT)

Some Clarivate Plc (NYSE:CLVT) shareholders may be a little concerned to see that the Chief Product Officer, Gordon Samson, recently sold a substantial US$1.0m worth of stock at a price of US$10.48 per share. That sale reduced their total holding by 12% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Clarivate

In fact, the recent sale by Gordon Samson was the biggest sale of Clarivate shares made by an insider individual in the last twelve months, according to our records. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$9.26. So it may not tell us anything about how insiders feel about the current share price.

Gordon Samson ditched 200.00k shares over the year. The average price per share was US$12.28. 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!

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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. It's great to see that Clarivate insiders own 1.8% of the company, worth about US$110m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Clarivate Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clarivate. While conducting our analysis, we found that Clarivate has 2 warning signs and it would be unwise to ignore them.

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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. 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.