Ciena Independent Director Bruce Claflin Sells 41% Of Holding

We wouldn't blame Ciena Corporation (NYSE:CIEN) shareholders if they were a little worried about the fact that Bruce Claflin, the Independent Director recently netted about US$1.4m selling shares at an average price of US$84.96. That sale reduced their total holding by 41% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Ciena

The Last 12 Months Of Insider Transactions At Ciena

In fact, the recent sale by Bruce Claflin was the biggest sale of Ciena shares made by an insider individual in the last twelve months, according to our records. So we know that an insider sold shares at around the present share price of US$82.25. 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).

Ciena insiders didn't buy any shares over the last year. 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 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 Of Ciena

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Ciena insiders own 0.9% of the company, currently worth about US$103m based on the recent share price. 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 Does This Data Suggest About Ciena Insiders?

An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Ciena. Every company has risks, and we've spotted 2 warning signs for Ciena you should know about.

But note: Ciena 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.