Don't Ignore The Insider Selling In CCL Industries

Some CCL Industries Inc. (TSE:CCL.B) shareholders may be a little concerned to see that the Senior Vice President of Finance, Lalitha Vaidyanathan, recently sold a substantial CA$1.4m worth of stock at a price of CA$95.09 per share. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

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The Last 12 Months Of Insider Transactions At CCL Industries

In fact, the recent sale by Senior Vice President of Finance Lalitha Vaidyanathan was not their only sale of CCL Industries shares this year. Earlier in the year, they fetched CA$81.07 per share in a -CA$3.1m sale. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$94.67. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 27% of Lalitha Vaidyanathan's stake.

Insiders in CCL Industries 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

Check out our latest analysis for CCL Industries

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Insider Ownership

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CCL Industries insiders own about CA$154m worth of shares (which is 0.9% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Does This Data Suggest About CCL Industries Insiders?

Insiders haven't bought CCL Industries 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. 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. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. You'd be interested to know, that we found 1 warning sign for CCL Industries and we suggest you have a look.

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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.