Yahoo Finance Insiders who bought stock earlier this year lose -US$93k as Chimerix, Inc. (NASDAQ:CMRX) drops to US$120m
The recent price decline of 24% in Chimerix, Inc.'s (NASDAQ:CMRX) stock may have disappointed insiders who bought US$184k worth of shares at an average price of US$2.77 in the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$91k which is not ideal.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Chimerix
The Last 12 Months Of Insider Transactions At Chimerix
In the last twelve months, the biggest single purchase by an insider was when Independent Director Fred Middleton bought US$78k worth of shares at a price of US$7.83 per share. That means that an insider was happy to buy shares at above the current price of US$1.37. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Happily, we note that in the last year insiders paid US$184k for 66.40k shares. But they sold 4.59k shares for US$28k. In total, Chimerix insiders bought more than they sold over the last year. Their average price was about US$2.77. These transactions suggest that insiders have considered the current price attractive. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders at Chimerix Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Chimerix. Not only was there no selling that we can see, but they collectively bought US$106k worth of shares. That shows some optimism about the company's future.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own US$1.2m worth of Chimerix stock, about 1.0% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Chimerix Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Chimerix insiders are expecting a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chimerix. Be aware that Chimerix is showing 4 warning signs in our investment analysis, and 2 of those are a bit concerning...
Of course Chimerix 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, but not derivative transactions.
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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.
