Have Cerence Insiders Been Selling Stock?

Anyone interested in Cerence Inc. (NASDAQ:CRNC) should probably be aware that the Executive VP, Jennifer Salinas, recently divested US$230k worth of shares in the company, at an average price of US$8.83 each. However, the silver lining is that the sale only reduced their total holding by 3.6%, so we're hesitant to read anything much into it, on its own.

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The Last 12 Months Of Insider Transactions At Cerence

Over the last year, we can see that the biggest insider sale was by the President, Brian Krzanich, for US$1.5m worth of shares, at about US$11.46 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$8.61. So it is hard to draw any strong conclusion from it.

Insiders in Cerence didn't buy any shares in the last year. 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 Cerence

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Insider Ownership Of Cerence

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cerence insiders own about US$12m worth of shares. That equates to 3.0% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Cerence Tell Us?

An insider hasn't bought Cerence stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cerence. In terms of investment risks, we've identified 2 warning signs with Cerence and understanding these should be part of your investment process.

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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.