Don't Ignore The Insider Selling In Climb Global Solutions \

We'd be surprised if Climb Global Solutions, Inc. (NASDAQ:CLMB) shareholders haven't noticed that the VP & CFO, Andrew Clark, recently sold US$366k worth of stock at US$48.49 per share. That sale was 19% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Climb Global Solutions

Notably, that recent sale by Andrew Clark is the biggest insider sale of Climb Global Solutions shares that we've seen in the last year. That means that even when the share price was slightly below the current price of US$49.40, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 19% of Andrew Clark's stake.

Happily, we note that in the last year insiders paid US$160k for 4.05k shares. But insiders sold 17.51k shares worth US$740k. In total, Climb Global Solutions insiders sold more than they bought over the last year. The sellers received a price of around US$42.25, on average. It's not too encouraging to see that insiders have sold at below the current price. Of course, the sales could be motivated for a multitude of reasons, so we shouldn't jump to conclusions. 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!

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Climb Global Solutions insiders own 7.0% of the company, worth about US$15m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Climb Global Solutions Insiders?

The insider sales have outweighed the insider buying, at Climb Global Solutions, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Climb Global Solutions makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We're in no rush to buy! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Climb Global Solutions that deserve your attention before buying any shares.

Of course Climb Global Solutions 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, but not derivative transactions.

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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.