Investors who take an interest in Clene Inc. (NASDAQ:CLNN) should definitely note that the Independent Chairman of the Board, David Matlin, recently paid US$3.01 per share to buy US$400k worth of the stock. Although the purchase only increased their holding by 7.1%, it is still a solid purchase in our view.
See our latest analysis for Clene
Clene Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Chairman of the Board David Matlin was not the only time they bought Clene shares this year. Earlier in the year, they paid US$9.63 per share in a US$2.0m purchase. That means that even when the share price was higher than US$2.87 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
In the last twelve months Clene insiders were buying shares, but not selling. They paid about US$5.72 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Clene is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of Clene
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. Clene insiders own about US$40m worth of shares. That equates to 22% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Clene Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. But we don't feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Clene insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 3 warning signs for Clene (1 is potentially serious!) and we strongly recommend you look at these before investing.