We’d be surprised if CoreCivic, Inc. (NYSE:CXW) shareholders haven’t noticed that the Independent Director, Thurgood Marshall, recently sold US$127k worth of stock at US$9.40 per share. That sale was 42% of their holding, so it does make us raise an eyebrow.
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CoreCivic Insider Transactions Over The Last Year
In fact, the recent sale by Independent Director Thurgood Marshall was not their only sale of CoreCivic shares this year. They previously made an even bigger sale of -US$134.2k worth of shares at a price of US$17.65 per share. We generally don’t like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$9.21. So it may not shed much light on insider confidence at current levels.
Insiders in CoreCivic didn’t buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership of CoreCivic
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that CoreCivic insiders own 1.0% of the company, worth about US$11m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About CoreCivic Insiders?
An insider hasn’t bought CoreCivic stock in the last three months, but there was some selling. And even if we look at the last year, we didn’t see any purchases. Insider ownership isn’t particularly high, so this analysis makes us cautious about the company. We’re in no rush to buy! 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. Every company has risks, and we’ve spotted 4 warning signs for CoreCivic (of which 2 are a bit concerning!) you should know about.
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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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