We wouldn't blame CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) shareholders if they were a little worried about the fact that Lauren Young, the Independent Director recently netted about US$282m selling shares at an average price of US$11.30. That sale reduced their total holding by 42% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At CCC Intelligent Solutions Holdings
Over the last year, we can see that the biggest insider sale was by the insider, J. Egan, for US$706m worth of shares, at about 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$11.10. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was 100% of J. Egan's holding.
In the last year CCC Intelligent Solutions Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and 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!
I will like CCC Intelligent Solutions Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Does CCC Intelligent Solutions Holdings Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that CCC Intelligent Solutions Holdings insiders own 3.5% of the company, worth about US$245m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The CCC Intelligent Solutions Holdings Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. 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. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course CCC Intelligent Solutions Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
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