As Clearwater Paper Corporation (NYSE:CLW) gains 9.4%, insiders who bought last year may be wishing they had bet higher
Last week, Clearwater Paper Corporation (NYSE:CLW) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 9.4% last week, resulting in a US$60m increase in the company's market worth. Put another way, the original US$107k acquisition is now worth US$126k.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Clearwater Paper
Clearwater Paper Insider Transactions Over The Last Year
The Independent Director Ann Nelson made the biggest insider purchase in the last 12 months. That single transaction was for US$107k worth of shares at a price of US$36.90 each. We do like to see buying, but this purchase was made at well below the current price of US$41.84. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
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!
Clearwater Paper is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data indicates that Clearwater Paper insiders own about US$6.2m worth of shares (which is 0.9% of the company). Overall, this level of ownership isn't that impressive, but it's certainly better than nothing!
What Might The Insider Transactions At Clearwater Paper Tell Us?
It doesn't really mean much that no insider has traded Clearwater Paper shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Clearwater Paper stock. 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. For instance, we've identified 3 warning signs for Clearwater Paper (2 are potentially serious) you should be aware of.
But note: Clearwater Paper 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.
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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