This Insider Has Just Sold Shares In Core Scientific

Some Core Scientific, Inc. (NASDAQ:CORZ) shareholders may be a little concerned to see that the Chief Legal Officer, Todd Duchene, recently sold a substantial US$562k worth of stock at a price of US$11.23 per share. However, that sale only accounted for 2.3% of their holding, so arguably it doesn't say much about their conviction.

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The Last 12 Months Of Insider Transactions At Core Scientific

Over the last year, we can see that the biggest insider sale was by the CEO, President & Director, Adam Sullivan, for US$6.0m worth of shares, at about US$16.24 per share. 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$10.78. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 146.96k shares for US$1.3m. On the other hand they divested 1.02m shares, for US$15m. Over the last year we saw more insider selling of Core Scientific shares, than buying. The sellers received a price of around US$14.42, on average. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$10.78). The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

Check out our latest analysis for Core Scientific

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 1.5% of Core Scientific shares, worth about US$50m. 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 Does This Data Suggest About Core Scientific Insiders?

The stark truth for Core Scientific is that there has been more insider selling than insider buying in the last three months. Zooming out, the longer term picture doesn't give us much comfort. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Core Scientific you should be aware of, and 2 of them are a bit unpleasant.

But note: Core Scientific 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.