Yahoo Finance Several Insiders Invested In Cohort Flagging Positive News
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Cohort plc (LON:CHRT), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Cohort
Cohort Insider Transactions Over The Last Year
The Independent Non-Executive director Peter Lynas made the biggest insider purchase in the last 12 months. That single transaction was for UK£82k worth of shares at a price of UK£5.45 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of UK£7.80. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Happily, we note that in the last year insiders paid UK£135k for 24.53k shares. On the other hand they divested 8.34k shares, for UK£62k. In the last twelve months there was more buying than selling by Cohort insiders. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Cohort is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Are Cohort Insiders Buying Or Selling?
There was some insider buying at Cohort over the last quarter. In that period insiders spent UK£48k on shares. But they sold UK£42k worth. It is nice to see that insiders have bought, but the quantum isn't large enough to get us excited.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Cohort insiders own 28% of the company, currently worth about UK£89m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Cohort Tell Us?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Cohort insiders are doubting the company, and they do own shares. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
But note: Cohort 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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
