Have Insiders Been Buying Clearside Biomedical, Inc. (NASDAQ:CLSD) Shares?
We often see insiders buying up shares in companies that perform well over the long term. 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 shareholders might well want to know whether insiders have been buying or selling shares in Clearside Biomedical, Inc. (NASDAQ:CLSD).
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 would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But it is perfectly logical to keep tabs on what insiders are doing. 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 Clearside Biomedical
The Last 12 Months Of Insider Transactions At Clearside Biomedical
In the last twelve months, the biggest single purchase by an insider was when insider Bradford Whitmore bought US$572k worth of shares at a price of US$1.65 per share. That implies that an insider found the current price of US$1.68 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Clearside Biomedical insiders decided to buy shares at close to current prices.
Clearside Biomedical insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Clearside Biomedical is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Clearside Biomedical Insiders Bought Stock Recently
Over the last quarter, Clearside Biomedical insiders have spent a meaningful amount on shares. In total, insiders bought US$582k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Clearside Biomedical Boast High Insider Ownership?
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. Our data suggests Clearside Biomedical insiders own 2.1% of the company, worth about US$1.6m. We prefer to see high levels of insider ownership.
So What Do The Clearside Biomedical Insider Transactions Indicate?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Clearside Biomedical insiders are reasonably well aligned, and optimistic for the future. 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. For example, Clearside Biomedical has 5 warning signs (and 1 which makes us a bit uncomfortable) we think you should know about.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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. 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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