Don't Ignore The Insider Selling In Cerus

Investors may wish to note that the Chief Legal Officer of Cerus Corporation, Chrystal Jensen, recently netted US$94k from selling stock, receiving an average price of US$1.70. It wasn't a huge sale, but it did reduce their holding by 23%. This does not instill confidence.

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Cerus Insider Transactions Over The Last Year

Notably, that recent sale by Chrystal Jensen is the biggest insider sale of Cerus shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$1.76. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was only 23% of Chrystal Jensen's holding.

In total, Cerus insiders sold more than they bought over the last year. 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!

Check out our latest analysis for Cerus

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that Cerus insiders own 2.9% of the company, worth about US$9.9m. Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Cerus Tell Us?

An insider sold Cerus shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. 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. Every company has risks, and we've spotted 3 warning signs for Cerus you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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.