Some CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) shareholders may be a little concerned to see that insider J. Egan recently sold a substantial US$476m worth of stock at a price of US$11.43 per share. Probably the most concerning element of the whole transaction is that the disposal amounted to 51% of their entire holding.
The Last 12 Months Of Insider Transactions At CCC Intelligent Solutions Holdings
In fact, the recent sale by insider J. Egan was not their only sale of CCC Intelligent Solutions Holdings shares this year. They previously made an even bigger sale of -US$706m worth of shares at a price of US$10.11 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$11.39. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was 100% of J. Egan's holding.
Insiders in CCC Intelligent Solutions Holdings didn't buy any shares in the last year. 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!
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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. I reckon it's a good sign if insiders own a significant number of shares in the company. CCC Intelligent Solutions Holdings insiders own about US$246m worth of shares (which is 3.5% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About CCC Intelligent Solutions Holdings Insiders?
Insiders sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that CCC Intelligent Solutions Holdings has 1 warning sign and it would be unwise to ignore this.
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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 of direct interests only, but not derivative transactions or indirect interests.
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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.