We wouldn't blame Clearfield, Inc. (NASDAQ:CLFD) shareholders if they were a little worried about the fact that John Hill, the Chief Operating Officer recently netted about US$550k selling shares at an average price of US$33.26. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 8.0%.

The Last 12 Months Of Insider Transactions At Clearfield

Notably, that recent sale by John Hill is the biggest insider sale of Clearfield shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$32.59. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

In the last twelve months insiders purchased 18.18k shares for US$573k. But they sold 16.54k shares for US$550k. Overall, Clearfield insiders were net buyers during 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!

Clearfield is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Clearfield Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Clearfield insiders own about US$79m worth of shares. That equates to 17% 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 Do The Clearfield Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Clearfield stock, than buying, in the last three months. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So the recent selling doesn't worry us too much. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clearfield. For example - Clearfield has 1 warning sign we think you should be aware of.

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.

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.