Do insiders sell shares of Clarus Corporation (NASDAQ: CLAR)?
It is not uncommon to see companies perform well in the years after insiders buy shares. On the flip side, we would be remiss not to mention that insider selling is known to precede tough times for a business. So before you buy or sell Clarus Company (NASDAQ: CLAR), you might want to know if any insiders have bought or sold.
What is insider selling?
It is perfectly legal for company insiders, including members of the board of directors, to buy and sell shares of a company. However, these insiders should disclose their trading activities and not trade on the basis of inside information.
We don’t believe shareholders should just follow insider trading. But it makes perfect sense to keep an eye on what insiders are doing. As Peter Lynch said, “Insiders can sell their shares for any number of reasons, but they buy them for one only: they think the price will go up.”
Discover our latest analysis for Clarus
The last 12 months of insider trading at Clarus
Executive Chairman Warren Kanders made the biggest insider sale in the past 12 months. This one-time transaction involved shares valued at US $ 1.9 million at a price of US $ 17.62 each. This means that an insider was selling shares at a price slightly lower than the current price (US $ 26.56). When an insider sells below the current price, it suggests that he or she considered that lower price to be fair. This makes us wonder what they think of the recent (higher) valuation. Please note, however, that sellers can have a variety of reasons for selling, so we are not sure what they think about the stock price. This one-time sale only represented 2.8% of Warren Kanders’ stake.
Clarus insiders have not purchased any shares in the past year. You can see insider trading (by companies and individuals) over the past year represented in the graph below. By clicking on the graph below, you can see the exact detail of each insider trade!
If you like to buy stocks that insiders buy rather than sell, then you might love this free list of companies. (Hint: insiders bought them).
Clarus insiders sold shares recently
Over the past three months, we’ve seen significant insider sales at Clarus. In total, Senior Independent Director Nicholas Sokolow sold US $ 714,000 worth of shares during this period, and we did not record any purchases. This may suggest that some insiders think stocks aren’t cheap.
Does Clarus boast of ownership of a high initiate?
Another way to test the alignment between a company’s executives and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will have an incentive to build the business for the long term. Clarus insiders own 16% of the company, with a current value of approximately US $ 137 million based on the recent share price. This type of large insider ownership generally increases the chances that the business will be run in the best interests of all shareholders.
So what does this data suggest about Clarus insiders?
An insider recently sold shares of Clarus, but they did not buy any. And even though we look at last year, we haven’t seen any purchases. The company prides itself on having a high insider participation, but we’re a little hesitant, given the history of share sales. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. For example – Clarus has 4 warning signs we think you should be aware.
Of course Clarus might not be the best stock to buy. So you might want to see this free collection of high quality companies.
For the purposes of this article, insiders are the persons who report their transactions to the relevant regulatory body. We currently account for open market transactions and private assignments, but not derivative transactions.
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