Don’t Ignore The Fact That This Insider Just Sold Some Shares In The Cooper Companies, Inc. (NYSE:COO)

We note that the The Cooper Companies, Inc. (NYSE:COO) Independent Director, Gary Petersmeyer, recently sold US$81k worth of stock for US$322 per share. It might not be a huge sale, but it did reduce their holding size 16%, hardly encouraging.

View our latest analysis for Cooper Companies

The Last 12 Months Of Insider Transactions At Cooper Companies

Over the last year, we can see that the biggest insider sale was by the Independent Director, Michael Kalkstein, for US$1.0m worth of shares, at about US$289 per share. So it’s clear an insider wanted to take some cash off the table, even below the current price of US$328. 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. However, while insider selling is sometimes discouraging, it’s only a weak signal. We note that the biggest single sale was only 38% of Michael Kalkstein’s holding.

Cooper Companies insiders didn’t buy any shares over the last year. You can see the insider transactions (by 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!

NYSE:COO Recent Insider Trading, January 9th 2020
NYSE:COO Recent Insider Trading, January 9th 2020

I will like Cooper Companies 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 Cooper Companies 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Cooper Companies insiders own about US$108m worth of shares (which is 0.7% of the company). 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 Cooper Companies Insider Transactions Indicate?

An insider sold Cooper Companies shares recently, but they didn’t buy any. And even if we look to the last year, we didn’t see any purchases. But it is good to see that Cooper Companies is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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: Cooper Companies 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, but not derivative transactions.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

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