CEO, President & Executive Director Stuart Irving Just Sold A Bunch Of Shares In Computershare Limited (ASX:CPU)

Some Computershare Limited (ASX:CPU) shareholders may be a little concerned to see that the CEO, President & Executive Director , Stuart Irving, recently sold a substantial AU$1.3m worth of stock at a price of AU$16.43 per share. That sale reduced their total holding by 26% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Computershare

Computershare Insider Transactions Over The Last Year

Notably, that recent sale by Stuart Irving is the biggest insider sale of Computershare shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of AU$16.67. 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. 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 26%of Stuart Irving's holding.

You can see the insider transactions (by companies and 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!

I will like Computershare better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Computershare Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Computershare insiders own about AU$538m worth of shares (which is 5.3% of the company). 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 Does This Data Suggest About Computershare Insiders?

An insider sold Computershare shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Case in point: We've spotted 4 warning signs for Computershare you should be aware of, and 1 of them 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.

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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.
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