Insider Spends US$254k Buying More Shares In Clarivate

Investors who take an interest in Clarivate Plc (NYSE:CLVT) should definitely note that the Independent Director, Saurabh Saha, recently paid US$4.36 per share to buy US$254k worth of the stock. We reckon that's a good sign, especially since the purchase boosted their holding by 245%.

View our latest analysis for Clarivate

The Last 12 Months Of Insider Transactions At Clarivate

Notably, that recent purchase by Saurabh Saha is the biggest insider purchase of Clarivate shares that we've seen in the last year. That means that even when the share price was higher than US$4.20 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Saurabh Saha was the only individual insider to buy shares in the last twelve months. Notably Saurabh Saha was also the biggest seller.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Clarivate insiders own about US$27m worth of shares. That equates to 0.9% 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.

So What Does This Data Suggest About Clarivate Insiders?

It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Clarivate shares, given these transactions (along with notable insider ownership of the company). Of course, the future is what matters most. So if you are interested in Clarivate, you should check out this free report on analyst forecasts for the company.

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.