We wouldn't blame ChromaDex Corporation (NASDAQ:CDXC) shareholders if they were a little worried about the fact that Phillip Frost, a company insider, recently netted about US$2.9m selling shares at an average price of US$14.47. That sale reduced their total holding by 15% which is hardly insignificant, but far from the worst we've seen.
ChromaDex Insider Transactions Over The Last Year
In fact, the recent sale by Phillip Frost was the biggest sale of ChromaDex 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. The silver lining is that this sell-down took place above the latest price (US$11.41). So it is hard to draw any strong conclusion from it.
Over the last year, we can see that insiders have bought 6.00k shares worth US$27k. But they sold 200.00k shares for US$2.9m. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like ChromaDex better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does ChromaDex Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that ChromaDex insiders own 24% of the company, worth about US$182m. 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 Does This Data Suggest About ChromaDex Insiders?
An insider sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. 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 ChromaDex. At Simply Wall St, we found 2 warning signs for ChromaDex that deserve your attention before buying any shares.
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, but not derivative transactions.
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