It is not uncommon to see companies perform well in the years after insiders buy shares. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So before you buy or sell Calix, Inc. (NYSE:CALX), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. As Peter Lynch said, ‘insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.’
Check out our latest analysis for Calix
Calix Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Kevin DeNuccio bought US$269k worth of shares at a price of US$6.98 per share. We do like to see buying, but this purchase was at a lower price. The insider buying may not tell us much about how insiders feel about the current share price.
In the last twelve months insiders purchased 83.50k shares for US$635k. But they sold 34.98k for US$284k. In the last twelve months there was more buying than selling by Calix insiders. They paid about US$7.60 on average. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of US$9.29. You can see a visual depiction of insider transactions 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insiders at Calix Have Sold Stock Recently
There was substantially more insider selling, than buying, of Calix shares over the last three months. We note insiders cashed in US$277k worth of shares. On the other hand we note insiders bought US$175k worth of shares. Since the selling really does outweigh the buying, we’d say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership of Calix
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 14% of Calix shares, worth about US$69m. 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 Do The Calix Insider Transactions Indicate?
The stark truth for Calix is that there has been more insider selling than insider buying in the last three months. In contrast, they appear keener if you look at the last twelve months. Still, insiders don’t own a great deal of the stock. So the company doesn’t look great on this analysis. Of course, the future is what matters most. So if you are interested in Calix, you should check out this free report on analyst forecasts for the company.
Of course Calix may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.