Trade Alert: President of Advanced Technology Solutions Of Celestica Todd Cooper Has Sold Stock

Some Celestica Inc. (TSE:CLS) shareholders may be a little concerned to see that the President of Advanced Technology Solutions, Todd Cooper, recently sold a substantial CA$3.3m worth of stock at a price of CA$55.63 per share. That sale reduced their total holding by 25% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for Celestica

The Last 12 Months Of Insider Transactions At Celestica

In fact, the recent sale by Todd Cooper was the biggest sale of Celestica shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of CA$71.88. 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. 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 25%of Todd Cooper's holding.

Celestica insiders didn't buy any shares over the last year. 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!

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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. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Celestica insiders own 0.9% of the company, worth about CA$74m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Celestica Tell Us?

Insiders sold Celestica shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. But it is good to see that Celestica is growing earnings. Insiders own shares, but we're still pretty cautious, given the history of sales. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Celestica.

Of course Celestica 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.

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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.