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 The Chemours Company ( NYSE:CC ).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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’.
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The Last 12 Months Of Insider Transactions At Chemours
Over the last year, we can see that the biggest insider sale was by Senior VP & CFO Mark Newman for US$1.4m worth of shares, at about US$49.24 per share. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$33.59. So it may not tell us anything about how insiders feel about the current share price. Mark Newman was the only individual insider to sell over the last year.
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!
Chemours is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Chemours Have Bought Stock Recently
Over the last quarter, Chemours insiders have spent a meaningful amount on shares. Specifically, Richard Brown bought US$286k worth of shares in that time, and we didn’t record any sales whatsoever. That shows some optimism about the company’s future.
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Chemours insiders own about US$19m worth of shares. That equates to 0.4% of the company. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Chemours Insiders?
The recent insider purchase is heartening. On the other hand the transaction history, over the last year, isn’t so positive. While recent transactions indicate confidence in Chemours, insiders don’t own enough of the company to overcome our cautiousness about the longer term transactions. So they seem pretty well aligned, overall. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Chemours .
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.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at firstname.lastname@example.org .