This Insider Has Just Sold Shares In Clear Secure

Some Clear Secure, Inc. (NYSE:YOU) shareholders may be a little concerned to see that insider Kenneth Cornick recently sold a substantial US$15m worth of stock at a price of US$25.03 per share. That diminished their holding by a very significant 76%, which arguably implies a strong desire to reallocate capital.

We've discovered 2 warning signs about Clear Secure. View them for free.

Clear Secure Insider Transactions Over The Last Year

In fact, the recent sale by Kenneth Cornick was the biggest sale of Clear Secure shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$24.63. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

All up, insiders sold more shares in Clear Secure than they bought, over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for Clear Secure

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Clear Secure

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Clear Secure insiders own 5.8% of the company, worth about US$192m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Clear Secure Insider Transactions Indicate?

An insider sold Clear Secure shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Clear Secure makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 2 warning signs for Clear Secure (1 shouldn't be ignored!) that we believe deserve your full attention.

Of course Clear Secure 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.