This Insider Has Just Sold Shares In CCC Intelligent Solutions Holdings

We'd be surprised if CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) shareholders haven't noticed that the Executive VP and Chief Product & Technology Officer, John Goodson, recently sold US$416k worth of stock at US$9.79 per share. That sale was 21% of their holding, so it does make us raise an eyebrow.

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CCC Intelligent Solutions Holdings Insider Transactions Over The Last Year

The Independent Presiding Director, Eric Wei, made the biggest insider sale in the last 12 months. That single transaction was for US$272m worth of shares at a price of US$9.08 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$9.64. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. It is worth noting that this sale was 65% of Eric Wei's holding.

In the last twelve months insiders purchased 300.00k shares for US$3.0m. But insiders sold 60.06m shares worth US$545m. In total, CCC Intelligent Solutions Holdings insiders sold more than they bought over the last year. The average sell price was around US$9.08. We don't gain confidence from insider selling near the recent share price. But we don't put too much weight on the insider selling, since sellers could have personal reasons. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for CCC Intelligent Solutions Holdings

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Insider Ownership Of CCC Intelligent Solutions Holdings

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. It's great to see that CCC Intelligent Solutions Holdings insiders own 9.4% of the company, worth about US$591m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The CCC Intelligent Solutions Holdings Insider Transactions Indicate?

An insider hasn't bought CCC Intelligent Solutions Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we've found that CCC Intelligent Solutions Holdings has 4 warning signs (1 doesn't sit too well with us!) that deserve your attention before going any further with your analysis.

But note: CCC Intelligent Solutions Holdings 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 of direct interests only, but not derivative transactions or indirect interests.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.