We wouldn’t blame Cabot Microelectronics Corporation (NASDAQ:CCMP) shareholders if they were a little worried about the fact that William Noglows, the Independent Chairman of the Board recently netted about US$1.5m selling shares at an average price of US$162. That’s a big disposal, and it decreased their holding size by 12%, which is notable but not too bad.
See our latest analysis for Cabot Microelectronics
Cabot Microelectronics Insider Transactions Over The Last Year
In fact, the recent sale by William Noglows was the biggest sale of Cabot Microelectronics shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$157. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Cabot Microelectronics insiders didn’t buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
I will like Cabot Microelectronics better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Does Cabot Microelectronics Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Cabot Microelectronics insiders own 1.1% of the company, worth about US$49m. While this is a strong but not outstanding level of insider ownership, it’s enough to indicate some alignment between management and smaller shareholders.
So What Does This Data Suggest About Cabot Microelectronics Insiders?
Insiders haven’t bought Cabot Microelectronics stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. Insiders own shares, but we’re still pretty cautious, given the history of sales. So we’d only buy after careful consideration. While we like knowing what’s going on with the insider’s ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We’ve spotted 4 warning signs for Cabot Microelectronics you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, but not derivative transactions.
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