We’d be surprised if Cogent Communications Holdings, Inc. (NASDAQ:CCOI) shareholders haven’t noticed that the Director, Richard Liebhaber, recently sold US$300k worth of stock at US$59.90 per share. However, the silver lining is that the sale only reduced their total holding by-7%, so we’re hesitant to read anything much into it, on its own.
View our latest analysis for Cogent Communications Holdings
Cogent Communications Holdings Insider Transactions Over The Last Year
The Director, David Bath, made the biggest insider sale in the last 12 months. That single transaction was for US$1.0m worth of shares at a price of US$55.03 each. That means that an insider was selling shares at slightly below the current price (US$58.07). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don’t know for sure what they think of the stock price. We note that the biggest single sale was only 40.8% of David Bath’s holding.
In the last twelve months insiders netted US$4.9m for 88535 shares sold. In the last year Cogent Communications Holdings insiders didn’t buy any company stock. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company 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. Cogent Communications Holdings insiders own 11% of the company, currently worth about US$285m 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 Cogent Communications Holdings Insiders?
Insiders haven’t bought Cogent Communications Holdings stock in the last three months, but there was some selling. Looking to the last twelve months, our data doesn’t show any insider buying. But since Cogent Communications Holdings is profitable and growing, we’re not too worried by this. The company boasts high insider ownership, but we’re a little hesitant, given the history of share sales. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Cogent Communications Holdings.
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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
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. Thank you for reading.