Yahoo Finance Insiders rewarded with a US$191k addition on top of their US$801k purchase as Clearwater Analytics Holdings, Inc. (NYSE:CWAN) hits US$5.1b
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 19% resulting in a US$603m addition to the company’s market value. Put another way, the original US$801k acquisition is now worth US$992k.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Clearwater Analytics Holdings
The Last 12 Months Of Insider Transactions At Clearwater Analytics Holdings
Notably, that recent purchase by Sandeep Sahai is the biggest insider purchase of Clearwater Analytics Holdings shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (US$21.61), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Clearwater Analytics Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Clearwater Analytics Holdings Have Bought Stock Recently
It's good to see that Clearwater Analytics Holdings insiders have made notable investments in the company's shares. Specifically, CEO & Director Sandeep Sahai bought US$496k worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Insider Ownership of Clearwater Analytics Holdings
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Clearwater Analytics Holdings insiders have about 0.06% of the stock, worth approximately US$3.3m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We consider this fairly low insider ownership.
So What Do The Clearwater Analytics Holdings Insider Transactions Indicate?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Clearwater Analytics Holdings insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clearwater Analytics Holdings. Every company has risks, and we've spotted 1 warning sign for Clearwater Analytics Holdings you should know about.
Of course Clearwater Analytics 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, 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.
