Pleasing Signs As A Number Of Insiders Buy Clearside Biomedical Stock
When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Clearside Biomedical, Inc.'s (NASDAQ:CLSD) instance, it's good news for shareholders.
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.
See 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$100k worth of shares at a price of US$0.74 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$1.38. 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.
Happily, we note that in the last year insiders paid US$117k for 155.78k shares. But they sold 30.90k shares for US$39k. Overall, Clearside Biomedical insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Clearside Biomedical Insiders Are Selling The Stock
The last three months saw some Clearside Biomedical insider selling. Insiders divested only US$39k worth of shares in that time. Neither the lack of buying nor the presence of selling is heartening. But the selling simply isn't sufficiently substantial to be of much use as a signal.
Insider Ownership Of Clearside Biomedical
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. From our data, it seems that Clearside Biomedical insiders own 6.8% of the company, worth about US$6.9m. Whilst better than nothing, we're not overly impressed by these holdings.
So What Do The Clearside Biomedical Insider Transactions Indicate?
We did not see any insider buying in the last three months, but we did see selling. But the sales were small, so we're not concerned. However, our analysis of transactions over the last year is heartening. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Clearside Biomedical 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. Our analysis shows 5 warning signs for Clearside Biomedical (1 can't be ignored!) and we strongly recommend you look at them before investing.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.
