Who Has Been Buying Chimerix, Inc. (NASDAQ:CMRX) Shares?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 Chimerix, Inc. (NASDAQ:CMRX).

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 in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Chimerix

The Last 12 Months Of Insider Transactions At Chimerix

In the last twelve months, the biggest single purchase by an insider was when CEO, President & Director Michael Sherman bought US$106k worth of shares at a price of US$1.45 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$4.83. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

Over the last year, we can see that insiders have bought 159.80k shares worth US$233k. But they sold 48.60k shares for US$100k. In total, Chimerix insiders bought more than they sold over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

Chimerix is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Chimerix Insiders Are Selling The Stock

We have seen a bit of insider selling at Chimerix, over the last three months. Executive Director of Finance & Accounting and Principal Accounting Officer David Jakeman only netted US$11k selling shares, in that period. Neither the lack of buying nor the presence of selling is heartening. But the amount sold isn't enough for us to put any weight on it.

Does Chimerix Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. From our data, it seems that Chimerix insiders own 2.3% of the company, worth about US$6.9m. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!

So What Does This Data Suggest About Chimerix Insiders?

We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Chimerix stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chimerix. For instance, we've identified 4 warning signs for Chimerix (1 is a bit unpleasant) you should be aware of.

But note: Chimerix may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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