Trade Alert: Independent Director Of Corpay Joseph Farrelly Has Sold Stock
Some Corpay, Inc. (NYSE:CPAY) shareholders may be a little concerned to see that the Independent Director, Joseph Farrelly, recently sold a substantial US$2.2m worth of stock at a price of US$410 per share. That's a big disposal, and it decreased their holding size by 43%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Corpay
The Group President of Brazil Vehicle Payments & Strategic Transformation, Armando Netto, made the biggest insider sale in the last 12 months. That single transaction was for US$6.1m worth of shares at a price of US$357 each. That means that an insider was selling shares at slightly below the current price (US$417). 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. 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. This single sale was 52% of Armando Netto's stake.
In total, Corpay insiders sold more than they bought over 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!
Check out our latest analysis for Corpay
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Corpay 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Corpay insiders own 3.9% of the company, currently worth about US$1.1b based on the recent share price. 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 Corpay Insider Transactions Indicate?
Insiders haven't bought Corpay stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Corpay 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. Case in point: We've spotted 2 warning signs for Corpay you should be aware of, and 1 of these can't be ignored.
But note: Corpay 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.