XOMA Corporation (NASDAQ:XOMA) insiders made a nice sum after selling shares worth $29.60 per share today for $33.62
Although XOMA Corporation (NASDAQ:XOMA) stock gained 20% last week, insiders who have sold US$303,000 worth of stock in the past year are likely better off. Holding shares would have meant that their investment would be worth less today than it was when sold. Thus, selling at an average price of US$33.62, which is higher than the current price, might have been the best decision.
While we don’t believe shareholders should simply follow insider trading, we would consider it foolish to ignore insider trading altogether.
See our latest analysis for XOMA
XOMA insider trades over the past year
CEO and Chairman of the Board, James Neal, has made the largest insider sale in the last 12 months. This single transaction involved US$303,000 of shares at a price of US$35.13 each. Although insider selling is negative, for us it is even more negative if the stock is sold at a lower price. The good news is that this big sell was well above the current price of US$29.60. So this may not shed much light on insider confidence at current levels. James Neal was the only individual insider to sell in the past year.
You can see insider trading (by companies and individuals) over the past year illustrated in the table below. By clicking on the graph below, you will be able to see the precise detail of each insider trade!
I’ll like XOMA better if I see big insider buys. In the meantime, watch this free list of growing companies with significant and recent insider buying.
Does XOMA boast of high insider ownership?
Examining the total insider holdings in a company can help you know if they are well aligned with common shareholders. I think it’s a good sign if insiders have a significant number of shares in the company. Based on our data, XOMA insiders own about 0.6% of the shares, worth about US$2.0 million. We prefer to see high levels of insider ownership.
So what does this data suggest about XOMA insiders?
It doesn’t mean much that no insider has traded XOMA stock in the last quarter. We don’t take much encouragement from transactions by XOMA insiders. And typically, insiders own more shares in the company, according to our data. While we like to know what’s going on with insider ownership and trading, we also make sure to consider the risks a stock faces before making any investment decisions. To help you, we found 4 warning signs (2 make us uncomfortable!) that you should be aware of before buying shares of XOMA.
But note: XOMA may not be the best stock to buy. So take a look at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.
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