Have Cembre Insiders Been Selling Stock?
We'd be surprised if Cembre S.p.A. (BIT:CMB) shareholders haven't noticed that the Deputy Chairman of the Board, Aldo Bottini Bongrani, recently sold €386k worth of stock at €83.93 per share. However, the silver lining is that the sale only reduced their total holding by 4.6%, so we're hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At Cembre
Notably, that recent sale by Aldo Bottini Bongrani is the biggest insider sale of Cembre shares that we've seen in the last year. That means that even when the share price was below the current price of €85.90, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. 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. We note that the biggest single sale was only 4.6% of Aldo Bottini Bongrani's holding.
Aldo Bottini Bongrani ditched 14.85k shares over the year. The average price per share was €87.84. 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!
Check out our latest analysis for Cembre
I will like Cembre 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.
Insider Ownership Of Cembre
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Cembre insiders own 19% of the company, worth about €272m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Cembre Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. On the plus side, Cembre makes money, and is growing profits. 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. While conducting our analysis, we found that Cembre has 3 warning signs and it would be unwise to ignore them.
But note: Cembre 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.