As Concentrix Corporation's (NASDAQ:CNXC)) market cap dropped by US$346m, insiders who sold US$13m worth of stock were able to offset their losses

Simply Wall St
May 11, 2022
Source: Shutterstock

Insiders at Concentrix Corporation (NASDAQ:CNXC) sold US$13m worth of stock at an average price of US$156 a share over the past year, making the most of their investment. The company’s market cap plunged by US$346m after price dropped by 4.3% last week but insiders were able to limit their loss to an extent.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Concentrix

The Last 12 Months Of Insider Transactions At Concentrix

In the last twelve months, the biggest single sale by an insider was when the insider, Feng-Chiang Miau, sold US$7.5m worth of shares at a price of US$146 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$147. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 8.6% of Feng-Chiang Miau's holding.

In the last twelve months insiders purchased 2.11k shares for US$343k. But insiders sold 86.68k shares worth US$13m. Over the last year we saw more insider selling of Concentrix shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

NasdaqGS:CNXC Insider Trading Volume May 11th 2022

I will like Concentrix better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insiders at Concentrix Have Bought Stock Recently

It's good to see that Concentrix insiders have made notable investments in the company's shares. In total, insiders bought US$240k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.

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. We usually like to see fairly high levels of insider ownership. Concentrix insiders own about US$130m worth of shares (which is 1.7% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Concentrix Insiders?

It's certainly positive to see the recent insider purchases. However, the longer term transactions are not so encouraging. The recent buying by some insiders , along with high insider ownership, suggest that Concentrix insiders are fairly aligned, and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Concentrix. You'd be interested to know, that we found 2 warning signs for Concentrix and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.