Some Cipher Digital Inc. (NASDAQ:CIFR) shareholders may be a little concerned to see that the Independent Director, Wesley Williams, recently sold a substantial US$627k worth of stock at a price of US$22.26 per share. That's a big disposal, and it decreased their holding size by 18%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Cipher Digital
Notably, that recent sale by Independent Director Wesley Williams was not the only time they sold Cipher Digital shares this year. Earlier in the year, they fetched US$16.08 per share in a -US$802k sale. That means that even when the share price was below the current price of US$21.24, an insider wanted to cash in some shares. 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. We note that the biggest single sale was only 24% of Wesley Williams's holding.
In the last year Cipher Digital insiders didn't buy any company stock. 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!
View our latest analysis for Cipher Digital
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Does Cipher Digital Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Cipher Digital insiders own about US$297m worth of shares (which is 3.4% of the company). 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 Do The Cipher Digital Insider Transactions Indicate?
Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cipher Digital. When we did our research, we found 3 warning signs for Cipher Digital (1 is significant!) that we believe deserve your full attention.
But note: Cipher Digital 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.