Trade Alert: CEO, MD & Executive Director Of Clarity Pharmaceuticals Michelle Parker Has Sold Stock

We wouldn’t blame Clarity Pharmaceuticals Ltd (ASX:CU6) shareholders if they were a little worried about the fact that Michelle Parker, the CEO, MD & Executive Director recently netted about AU$1.1m selling shares at an average price of AU$3.06. That’s a big disposal, and it decreased their holding size by 26%, which is notable but not too bad.

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Clarity Pharmaceuticals Insider Transactions Over The Last Year

In fact, the recent sale by Michelle Parker was the biggest sale of Clarity Pharmaceuticals shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$2.96. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.

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!

View our latest analysis for Clarity Pharmaceuticals

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Clarity Pharmaceuticals insiders own about AU$145m worth of shares (which is 13% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Clarity Pharmaceuticals Tell Us?

An insider hasn’t bought Clarity Pharmaceuticals stock in the last three months, but there was some selling. And there weren’t any purchases to give us comfort, over the last year. It is good to see high insider ownership, but the insider selling leaves us cautious. While it’s good to be aware of 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. To assist with this, we’ve discovered 3 warning signs that you should run your eye over to get a better picture of Clarity Pharmaceuticals.

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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.