We wouldn’t blame Cabot Oil & Gas Corporation (NYSE:COG) shareholders if they were a little worried about the fact that Jeffrey Hutton, the Senior Vice President of Marketing recently netted about US$3.7m selling shares at an average price of US$18.32. That’s a big dump, and it decreased their holding size by 38%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Cabot Oil & Gas
In fact, the recent sale by Senior Vice President of Marketing Jeffrey Hutton was not their only sale of Cabot Oil & Gas shares this year. Earlier in the year, they fetched US$26.38 per share in a -US$3.9m sale. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$14.92. So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders purchased 36.50k shares for US$623k. But they sold 350720 shares for US$7.6m. Jeffrey Hutton sold a total of 350720 shares over the year at an average price of US$21.67. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Cabot Oil & Gas
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. It’s great to see that Cabot Oil & Gas insiders own 2.0% of the company, worth about US$119m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Cabot Oil & Gas Tell Us?
An insider sold stock recently, but they haven’t been buying. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. On the plus side, Cabot Oil & Gas makes money, and is growing profits. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it’s also worthwhile knowing the risks facing this company. To that end, you should learn about the 3 warning signs we’ve spotted with Cabot Oil & Gas (including 1 which is concerning).
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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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