Trade Alert: Hoi Shuen Chau At ChromaDex Corporation (NASDAQ:CDXC), Has Just Spent US$1.2m Buying 14% More Shares
ChromaDex Corporation (NASDAQ:CDXC) shareholders (or potential shareholders) will be happy to see that insider Hoi Shuen Chau recently bought a whopping US$1.2m worth of stock, at a price of US$1.25. Not only is that a big swing, but it increased their holding size by 14%, which is definitely great to see.
View our latest analysis for ChromaDex
ChromaDex Insider Transactions Over The Last Year
In fact, the recent purchase by Hoi Shuen Chau was the biggest purchase of ChromaDex shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of US$1.36. That means they have been optimistic about the company in the past, though they may have changed their mind. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months ChromaDex insiders were buying shares, but not selling. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
ChromaDex 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
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. Insiders own 31% of ChromaDex shares, worth about US$28m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About ChromaDex Insiders?
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. Given that insiders also own a fair bit of ChromaDex we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing ChromaDex. Case in point: We've spotted 3 warning signs for ChromaDex you should be aware of.
But note: ChromaDex 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.
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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.
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