Investors who take an interest in Clarus Corporation (NASDAQ:CLAR) should definitely note that the Lead Independent Director, Nicholas Sokolow, recently paid US$4.43 per share to buy US$443k worth of the stock. That's a very solid buy in our book, and increased their holding by a noteworthy 16%.

See our latest analysis for Clarus

Clarus Insider Transactions Over The Last Year

The Executive Chairman Warren Kanders made the biggest insider purchase in the last 12 months. That single transaction was for US$1.2m worth of shares at a price of US$4.19 each. So it's clear an insider wanted to buy, at around the current price, which is US$4.48. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. The good news for Clarus share holders is that insiders were buying at near the current price.

Happily, we note that in the last year insiders paid US$1.8m for 424.90k shares. On the other hand they divested 51.69k shares, for US$230k. In the last twelve months there was more buying than selling by Clarus insiders. 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!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Insider Ownership Of Clarus

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 18% of Clarus shares, worth about US$30m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Clarus Tell Us?

It is good to see recent purchasing. 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. Given that insiders also own a fair bit of Clarus we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clarus. When we did our research, we found 2 warning signs for Clarus (1 is significant!) that we believe deserve your full attention.

Of course Clarus 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 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.