Don't Ignore The Fact That This Insider Just Sold Some Shares In Clovis Oncology, Inc. (NASDAQ:CLVS)

By
Simply Wall St
Published
March 17, 2021
NasdaqGS:CLVS

Investors may wish to note that an insider of Clovis Oncology, Inc., Thomas Harding, recently netted US$56k from selling stock, receiving an average price of US$5.99. While that isn't a lot of money, it was a substantial 89% of their holding, so certainly isn't a good sign.

See our latest analysis for Clovis Oncology

The Last 12 Months Of Insider Transactions At Clovis Oncology

In fact, the recent sale by Thomas Harding was the biggest sale of Clovis Oncology shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$5.61. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

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!

insider-trading-volume
NasdaqGS:CLVS Insider Trading Volume March 17th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Insider Ownership of Clovis Oncology

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Clovis Oncology insiders own about US$18m worth of shares. That equates to 3.1% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Clovis Oncology Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clovis Oncology. Case in point: We've spotted 6 warning signs for Clovis Oncology you should be aware of, and 1 of these makes us a bit uncomfortable.

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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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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