It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Chimerix, Inc. (NASDAQ:CMRX).
Do Insider Transactions Matter?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. For example, a Columbia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
The Last 12 Months Of Insider Transactions At Chimerix
In the last twelve months, the biggest single sale by an insider was when Ernest Mario sold US$244k worth of shares at a price of US$4.67 per share. That is hardly a positive sign, even though it took place above the latest price (US$1.89). So it is hard to draw any strong conclusion from it. Ernest Mario was the only individual insider to sell over the last year.
Ernest Mario sold a total of 160.37k shares over the year at an average price of US$4.72. You can see a visual depiction of insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are 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 1.9% of the stock, worth approximately US$1.8m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Chimerix Tell Us?
The fact that there have been no Chimerix insider transactions recently certainly doesn’t bother us. The insider transactions at Chimerix are not inspiring us to buy. We also note that, as far as we can see, insider ownership is fairly low, compared to other companies. Of course, the future is what matters most. So if you are interested in Chimerix, you should check out this free report on analyst forecasts for the company.
But note: Chimerix 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.