We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So shareholders might well want to know whether insiders have been buying or selling shares in ClearSign Combustion Corporation (NASDAQ:CLIR).
What Is Insider Selling?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. 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.’
ClearSign Combustion Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Lon Bell bought US$250k worth of shares at a price of US$2.25 per share. That means that even when the share price was higher, an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. We generally consider it a positive if insiders have been buying on market, even above the current price.
Happily, we note that in the last year insiders bought 154.22k shares for a total of US$336k. Overall, ClearSign Combustion insiders were net buyers last year. The average buy price was around US$2.18. I’d consider this a positive as it suggests insiders see value at around the current price, which is US$1.16. You can see the insider transactions (by 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!
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.
ClearSign Combustion Insiders Bought Stock Recently
We saw some ClearSign Combustion insider buying shares in the last three months. Chief Technology Officer Donald Kendrick shelled out US$11k for shares in that time. It’s good to see the insider buying, as well as the lack of recent sellers. But the amount invested in the last three months isn’t enough for us too put much weight on it, as a single factor.
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. We usually like to see fairly high levels of insider ownership. Our data suggests ClearSign Combustion insiders own 4.0% of the company, worth about US$1.2m. I generally like to see higher levels of ownership.
So What Do The ClearSign Combustion Insider Transactions Indicate?
Insider purchases have outweighed sales, in the last three months. But overall the difference isn’t worth writing home about. However, our analysis of transactions over the last year is heartening. We’d like to see bigger individual holdings. However, we don’t see anything to make us think ClearSign Combustion insiders are doubting the company. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: ClearSign Combustion 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.
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