Have ChemoCentryx, Inc. (NASDAQ:CCXI) Insiders Been Selling Their Stock?

Some ChemoCentryx, Inc. (NASDAQ:CCXI) shareholders may be a little concerned to see that the Independent Director, Thomas Edwards, recently sold a substantial US$1.5m worth of stock at a price of US$61.32 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

See our latest analysis for ChemoCentryx

ChemoCentryx Insider Transactions Over The Last Year

In fact, the recent sale by Thomas Edwards was the biggest sale of ChemoCentryx shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$62.32). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 15% of Thomas Edwards's holding.

Insiders in ChemoCentryx didn't buy any shares in 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!

I will like ChemoCentryx better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of ChemoCentryx

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. ChemoCentryx insiders own 4.4% of the company, currently worth about US$189m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The ChemoCentryx 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. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 2 warning signs for ChemoCentryx that deserve your attention before buying any shares.

But note: ChemoCentryx 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, but not derivative transactions.

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This article by Simply Wall St is general in nature. 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.
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