Have Insiders Sold Cohu Shares Recently?

Anyone interested in Cohu, Inc. (NASDAQ:COHU) should probably be aware that the Lead Independent Director, Steven Bilodeau, recently divested US$460k worth of shares in the company, at an average price of US$44.85 each. That sale was 16% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Cohu

In fact, the recent sale by Steven Bilodeau was the biggest sale of Cohu shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at slightly below the current price (US$46.53). 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 16% of Steven Bilodeau's holding.

Insiders in Cohu didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

View our latest analysis for Cohu

I will like Cohu 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.

Does Cohu Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.7% of Cohu shares, worth about US$60m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Cohu Insiders?

Insiders haven't bought Cohu stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cohu. Case in point: We've spotted 1 warning sign for Cohu you should be aware of.

Of course Cohu 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.