Investors who take an interest in Chimerix, Inc. (NASDAQ:CMRX) should definitely note that the CEO, President & Director, Michael Sherman, recently paid US$1.45 per share to buy US$106k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 210%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Chimerix
In the last twelve months, the biggest single purchase by an insider was when Chief Business Officer & CFO Michael Andriole bought US$156k worth of shares at a price of US$1.56 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$1.51). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
In the last twelve months insiders purchased 361.00k shares for US$692k. On the other hand they divested 44325 shares, for US$89k. In total, Chimerix insiders bought more than they sold over the last year. The average buy price was around US$1.92. These transactions suggest that insiders have considered the current price attractive. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Chimerix is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Does Chimerix Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Chimerix insiders have about 1.8% of the stock, worth approximately US$1.7m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Chimerix Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Chimerix stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 4 warning signs that you should run your eye over to get a better picture of Chimerix.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
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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