We wouldn't blame CCC Intelligent Solutions Holdings Inc. (NASDAQ:CCCS) shareholders if they were a little worried about the fact that J. Egan, a company insider, recently netted about US$706m selling shares at an average price of US$10.11. Probably the most concerning element of the whole transaction is that the disposal amounted to 100% of their entire holding.
Check out our latest analysis for CCC Intelligent Solutions Holdings
CCC Intelligent Solutions Holdings Insider Transactions Over The Last Year
Notably, that recent sale by J. Egan is the biggest insider sale of CCC Intelligent Solutions Holdings shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of US$11.32. 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. 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. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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?
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. CCC Intelligent Solutions Holdings insiders own 3.8% of the company, currently worth about US$262m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About CCC Intelligent Solutions Holdings Insiders?
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. It is good to see high insider ownership, but the insider selling leaves us cautious. While we like knowing 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. In terms of investment risks, we've identified 1 warning sign with CCC Intelligent Solutions Holdings and understanding this should be part of your investment process.
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.
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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.