Keep An Eye On CleanSpark As Insider Stock Selling Hits US$19m

Even though CleanSpark, Inc. (NASDAQ:CLSK) stock gained 13% last week, insiders who sold US$19m worth of stock over the past year are probably better off. Holding on to stock would have meant their investment would be worth less now than it was at the time of sale. Thus selling at an average price of US$20.71, which is higher than the current price, may have been the best decision.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for CleanSpark

CleanSpark Insider Transactions Over The Last Year

The CEO, President & Director, Zachary Bradford, made the biggest insider sale in the last 12 months. That single transaction was for US$9.0m worth of shares at a price of US$20.31 each. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$10.13. So it may not tell us anything about how insiders feel about the current share price.

CleanSpark insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insiders At CleanSpark Have Sold Stock Recently

Over the last three months, we've seen significant insider selling at CleanSpark. Specifically, Independent Director Thomas Wood ditched US$205k worth of shares in that time, and we didn't record any purchases whatsoever. In light of this it's hard to argue that all the insiders think that the shares are a bargain.

Insider Ownership

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that CleanSpark insiders own 2.9% of the company, worth about US$75m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The CleanSpark Insider Transactions Indicate?

An insider hasn't bought CleanSpark stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CleanSpark. For example, CleanSpark has 3 warning signs (and 1 which doesn't sit too well with us) we think you should know about.

Of course CleanSpark may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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.