Investors who take an interest in Celldex Therapeutics, Inc. (NASDAQ:CLDX) should definitely note that the Founder, Anthony Marucci, recently paid US$26.82 per share to buy US$308k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 40%.
View our latest analysis for Celldex Therapeutics
In the last twelve months, the biggest single sale by an insider was when the Senior VP & Chief Medical Officer, Diane Young, sold US$1.6m worth of shares at a price of US$35.26 per share. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$24.98. So it may not tell us anything about how insiders feel about the current share price.
Over the last year we saw more insider selling of Celldex Therapeutics shares, than buying. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Celldex Therapeutics better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. Based on our data, Celldex Therapeutics insiders have about 0.3% of the stock, worth approximately US$4.9m. I generally like to see higher levels of ownership.
It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. The transactions over the last year don't give us confidence, and nor does the fairly low insider ownership, but at least the recent buying is a positive. While it's good to be aware of 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. While conducting our analysis, we found that Celldex Therapeutics has 2 warning signs and it would be unwise to ignore them.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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