Investors who take an interest in Conduent Incorporated (NASDAQ:CNDT) should definitely note that the Independent Director, A. Letier, recently paid US$2.61 per share to buy US$182k worth of the stock. We reckon that’s a good sign, especially since the purchase boosted their holding by 107%.
See our latest analysis for Conduent
Conduent Insider Transactions Over The Last Year
In fact, the recent purchase by A. Letier was the biggest purchase of Conduent shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$2.38. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company’s future. To us, it’s very important to consider the price insiders pay for shares is very important. Generally speaking, it catches our eye when an insider has purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price. The only individual insider to buy over the last year was A. Letier.
A. Letier bought 72.50k shares over the last 12 months at an average price of US$2.80. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Conduent is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Does Conduent Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Conduent insiders own 4.1% of the company, worth about US$21m. 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 Do The Conduent Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don’t feel the same about the fact the company is making losses. When combined with notable insider ownership, these factors suggest Conduent insiders are well aligned, and that they may think the share price is too low. So while it’s helpful to know what insiders are doing in terms of buying or selling, it’s also helpful to know the risks that a particular company is facing. For example – Conduent has 2 warning signs we think you should be aware of.
Of course Conduent may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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