Want to participate in a short research study? Help shape the future of investing tools and you could win a $250 gift card!
We often see insiders buying up shares in companies that perform well over the long term. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in Calyxt, Inc. (NASDAQ:CLXT).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
Calyxt Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Federico Tripodi for US$287k worth of shares, at about US$19.49 per share. Although we don’t gain confidence from insider selling, we note that this large sale was at well above current price of US$13.27. So it may not shed much light on insider confidence at current levels.
We note that in the last year insiders divested 31.82k shares for a total of US$620k. Over the last year we saw more insider selling of Calyxt shares, than buying. The sellers received a price of around US$19.49, on average. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$13.27. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Calyxt Boast High 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. We usually like to see fairly high levels of insider ownership. Our data indicates that Calyxt insiders own about US$6.7m worth of shares (which is 1.5% of the company). Whilst better than nothing, we’re not overly impressed by these holdings.
So What Does This Data Suggest About Calyxt Insiders?
The fact that there have been no Calyxt insider transactions recently certainly doesn’t bother us. We don’t take much encouragement from the transactions by Calyxt insiders. And usually insiders own more stock in the company, according to our data. Of course, the future is what matters most. So if you are interested in Calyxt, you should check out this free report on analyst forecasts for the company.
Of course Calyxt may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.