Anyone interested in CBRE Group, Inc. (NYSE:CBRE) should probably be aware that the Executive VP, Laurence Midler, recently divested US$374k worth of shares in the company, at an average price of US$49.90 each. However, the silver lining is that the sale only reduced their total holding by 7.3%, so we’re hesitant to read anything much into it, on its own.
The Last 12 Months Of Insider Transactions At CBRE Group
Over the last year, we can see that the biggest insider sale was by the Independent Director, Raymond Wirta, for US$3.2m worth of shares, at about US$36.01 per share. That means that even when the share price was below the current price of US$48.48, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it’s only a weak signal. It is worth noting that this sale was only 7.7% of Raymond Wirta’s holding.
All up, insiders sold more shares in CBRE Group 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
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. CBRE Group insiders own 0.9% of the company, currently worth about US$146m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About CBRE Group Insiders?
An insider hasn’t bought CBRE Group 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. But it is good to see that CBRE Group is growing earnings. 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. 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. For example – CBRE Group has 2 warning signs we think 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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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. 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.
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