We wouldn’t blame Coherent, Inc. (NASDAQ:COHR) shareholders if they were a little worried about the fact that Mark Sobey, the Executive VP & GM of OEM Laser Sources recently netted about US$582k selling shares at an average price of US$175. That’s a big dump, and it decreased their holding size by 27%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Coherent
In fact, the recent sale by Mark Sobey was the biggest sale of Coherent shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of US$172. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. We note that this sale took place at around the current price, so it isn’t a major concern, though it’s hardly a good sign.
Coherent insiders didn’t buy any shares over the last year. The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
I will like Coherent better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Coherent insiders own 1.3% of the company, worth about US$55m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
What Might The Insider Transactions At Coherent Tell Us?
Insiders sold Coherent shares recently, but they didn’t buy any. And there weren’t any purchases to give us comfort, over the last year. Insiders own shares, but we’re still pretty cautious, given the history of sales. So we’d only buy after careful consideration. 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.
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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