Trade Alert: Senior Vice President of Business Development Of CCL Industries James Sellors Has Sold Stock

We wouldn't blame CCL Industries Inc. (TSE:CCL.B) shareholders if they were a little worried about the fact that James Sellors, the Senior Vice President of Business Development recently netted about CA$775k selling shares at an average price of CA$77.50. Probably the most concerning element of the whole transaction is that the disposal amounted to 90% of their entire holding.

View our latest analysis for CCL Industries

CCL Industries Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President of Food & Beverage, Gunther Birkner, for CA$2.8m worth of shares, at about CA$70.00 per share. That means that even when the share price was below the current price of CA$77.61, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 39% of Gunther Birkner's holding.

Insiders in CCL Industries didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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Insider Ownership

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CCL Industries insiders own about CA$122m worth of shares. That equates to 0.9% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Do The CCL Industries Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But since CCL Industries is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of 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. You'd be interested to know, that we found 1 warning sign for CCL Industries and we suggest you have a look.

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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 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.