Coherus BioSciences, Inc. (NASDAQ:CHRS) insiders must be happy they sold stock as market cap drops to US$622m

By
Simply Wall St
Published
May 10, 2022
NasdaqGM:CHRS
Source: Shutterstock

Insiders seem to have made the most of their holdings by selling US$59k worth of Coherus BioSciences, Inc. (NASDAQ:CHRS) stock at an average sell price of US$16.80 during the past year. The company’s market cap plunged by US$127m after price dropped by 17% last week but insiders were able to limit their loss to an extent.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Coherus BioSciences

The Last 12 Months Of Insider Transactions At Coherus BioSciences

The Chief Financial Officer, McDavid Stilwell, made the biggest insider sale in the last 12 months. That single transaction was for US$59k worth of shares at a price of US$16.80 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.03. So it is hard to draw any strong conclusion from it. McDavid Stilwell was the only individual insider to sell over the last year. Notably McDavid Stilwell was also the biggest buyer, having purchased US$50k worth of shares.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NasdaqGM:CHRS Insider Trading Volume May 10th 2022

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

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Coherus BioSciences insiders own 1.7% of the company, worth about US$10m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Coherus BioSciences Insiders?

The fact that there have been no Coherus BioSciences insider transactions recently certainly doesn't bother us. We don't take much encouragement from the transactions by Coherus BioSciences insiders. But it's good to see that insiders own shares in the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 2 warning signs with Coherus BioSciences and understanding them should be part of your investment process.

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, but not derivative transactions.

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