39% Of This Computershare Insider's Holdings Were Sold

From what we can see, insiders were net sellers in Computershare Limited's (ASX:CPU ) during the past 12 months. That is, insiders sold the stock in greater numbers than they purchased it.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our free stock report includes 1 warning sign investors should be aware of before investing in Computershare. Read for free now.

The Last 12 Months Of Insider Transactions At Computershare

The CEO, President & Executive Director, Stuart Irving, made the biggest insider sale in the last 12 months. That single transaction was for AU$4.2m worth of shares at a price of AU$28.03 each. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$39.45. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 39% of Stuart Irving's stake. Stuart Irving was the only individual insider to sell shares in the last twelve months.

You can see a visual depiction of insider transactions (by companies and 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!

See our latest analysis for Computershare

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Computershare

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Computershare insiders own 4.1% of the company, worth about AU$932m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Do The Computershare Insider Transactions Indicate?

The fact that there have been no Computershare insider transactions recently certainly doesn't bother us. While we feel good about high insider ownership of Computershare, we can't say the same about the selling of shares. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Computershare. While conducting our analysis, we found that Computershare has 1 warning sign and it would be unwise to ignore it.

Of course Computershare 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 of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.