President Of Celestica Sold 45% Of Their Shares

We wouldn't blame Celestica Inc. (TSE:CLS) shareholders if they were a little worried about the fact that Robert Mionis, the President recently netted about CA$79m selling shares at an average price of CA$178. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Celestica

Celestica Insider Transactions Over The Last Year

Notably, that recent sale by Robert Mionis is the biggest insider sale of Celestica shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$191. 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. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was only 45% of Robert Mionis's holding.

In the last year Celestica insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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).

Does Celestica Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Celestica insiders own 1.4% of the company, currently worth about CA$323m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Celestica Tell Us?

Insiders sold Celestica shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Celestica is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. 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. While conducting our analysis, we found that Celestica has 1 warning sign and it would be unwise to ignore it.

But note: Celestica 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.