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Possible Bearish Signals With CCC Intelligent Solutions Holdings Insiders Disposing Stock

Simply Wall St ·  Mar 3 22:58

The fact that multiple CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

CCC Intelligent Solutions Holdings Insider Transactions Over The Last Year

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. That means that even when the share price was below the current price of US$11.66, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 100% of J. Egan's stake.

Insiders in CCC Intelligent Solutions Holdings didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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NasdaqGS:CCCS Insider Trading Volume March 3rd 2024

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does CCC Intelligent Solutions Holdings Boast High 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. CCC Intelligent Solutions Holdings insiders own about US$258m worth of shares (which is 3.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At CCC Intelligent Solutions Holdings Tell Us?

The fact that there have been no CCC Intelligent Solutions Holdings insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of CCC Intelligent Solutions Holdings insider transactions don't fill us with confidence. Of course, the future is what matters most. So if you are interested in CCC Intelligent Solutions Holdings, you should check out this free report on analyst forecasts for the company.

But note: CCC Intelligent Solutions Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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