Don't Ignore The Fact That This Insider Just Sold Some Shares In Cohort plc (LON:CHRT)

We wouldn't blame Cohort plc (LON:CHRT) shareholders if they were a little worried about the fact that Nicholas Prest, the Chairman of the Board recently netted about UK£1.8m selling shares at an average price of UK£6.15. That's a big disposal, and it decreased their holding size by 14%, which is notable but not too bad.

See our latest analysis for Cohort

Cohort Insider Transactions Over The Last Year

Notably, that recent sale by Nicholas Prest is the biggest insider sale of Cohort 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 UK£6.25. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 14% of Nicholas Prest's stake.

All up, insiders sold more shares in Cohort than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

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Insider Ownership of Cohort

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It appears that Cohort insiders own 28% of the company, worth about UK£72m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Does This Data Suggest About Cohort Insiders?

An insider sold Cohort shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Cohort makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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 1 warning sign for Cohort you should be aware of.

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. 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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