It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Clovis Oncology, Inc. (NASDAQ:CLVS).
What Is Insider Selling?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Clovis Oncology Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the , Corwin Hooks, for US$207k worth of shares, at about US$76.36 per share. 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$23.48). So it is hard to draw any strong conclusion from it. The only individual insider seller over the last year was Corwin Hooks.
You can see the insider transactions (by 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!
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).
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. Insiders own 2.9% of Clovis Oncology shares, worth about US$36m. 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 Do The Clovis Oncology Insider Transactions Indicate?
It doesn’t really mean much that no insider has traded Clovis Oncology shares in the last quarter. We don’t take much encouragement from the transactions by Clovis Oncology insiders. But it’s good to see that insiders own shares in the company. Of course, the future is what matters most. So if you are interested in Clovis Oncology, you should check out this free report on analyst forecasts for the company.
Of course Clovis Oncology may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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