Insiders Of Claritev Reap Rewards After Their Investment Jumps Another US$661k

Claritev Corporation (NYSE:CTEV) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 10% resulting in a US$58m addition to the company’s market value. As a result, their original purchase of US$2.69m worth of stock is now worth US$3.35m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

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Claritev Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Executive VP & CFO Douglas Garis bought US$632k worth of shares at a price of US$22.02 per share. We do like to see buying, but this purchase was made at well below the current price of US$37.45. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

In the last twelve months Claritev insiders were buying shares, but not selling. Their average price was about US$30.07. It is certainly positive to see that insiders have invested their own money in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!

See our latest analysis for Claritev

Claritev is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Claritev Insiders Bought Stock Recently

It's good to see that Claritev insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$676k for shares in the company -- and none sold. This makes one think the business has some good points.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Claritev insiders own about US$43m worth of shares. That equates to 7.0% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Claritev Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Insiders likely see value in Claritev shares, given these transactions (along with notable insider ownership of the company). 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. Case in point: We've spotted 3 warning signs for Claritev you should be aware of.

But note: Claritev may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.