Don't Ignore The Insider Selling In Cedar Woods Properties

Some Cedar Woods Properties Limited (ASX:CWP) shareholders may be a little concerned to see that the MD & Executive Director, Nathan Blackburne, recently sold a substantial AU$1.0m worth of stock at a price of AU$8.92 per share. That sale reduced their total holding by 23% which is hardly insignificant, but far from the worst we've seen.

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The Last 12 Months Of Insider Transactions At Cedar Woods Properties

Notably, that recent sale by Nathan Blackburne is the biggest insider sale of Cedar Woods Properties shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of AU$8.78. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

See our latest analysis for Cedar Woods Properties

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership Of Cedar Woods Properties

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. Insiders own 14% of Cedar Woods Properties shares, worth about AU$100m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Cedar Woods Properties Tell Us?

An insider sold Cedar Woods Properties shares recently, but they didn't buy any. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Cedar Woods Properties is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cedar Woods Properties. At Simply Wall St, we found 1 warning sign for Cedar Woods Properties that deserve your attention before buying any shares.

But note: Cedar Woods Properties may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.

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.

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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.