Bullish ChromaDex Corporation (NASDAQ:CDXC) insiders filled their treasuries with US$1.6m worth of stock over last year
Quite a few insiders have dramatically grown their holdings in ChromaDex Corporation (NASDAQ:CDXC) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for ChromaDex
The Last 12 Months Of Insider Transactions At ChromaDex
Over the last year, we can see that the biggest insider purchase was by insider Hoi Shuen Chau for US$1.2m worth of shares, at about US$1.25 per share. Even though the purchase was made at a significantly lower price than the recent price (US$1.65), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While ChromaDex insiders bought shares during the last year, they didn't sell. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership Of ChromaDex
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 26% of ChromaDex shares, worth about US$33m. 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 Do The ChromaDex Insider Transactions Indicate?
It doesn't really mean much that no insider has traded ChromaDex shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in ChromaDex and their transactions don't cause us concern. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we found 2 warning signs for ChromaDex that deserve your attention before buying any shares.
But note: ChromaDex 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, 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.
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