Trade Alert: Chief Digital & Technology Officer Of Coca-Cola HBC Mourad Ajarti Has Sold Stock

Some Coca-Cola HBC AG (LON:CCH) shareholders may be a little concerned to see that the Chief Digital & Technology Officer, Mourad Ajarti, recently sold a substantial UK£1.2m worth of stock at a price of UK£34.34 per share. That sale reduced their total holding by 45% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for Coca-Cola HBC

The Last 12 Months Of Insider Transactions At Coca-Cola HBC

Notably, that recent sale by Mourad Ajarti is the biggest insider sale of Coca-Cola HBC shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of UK£34.06. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Coca-Cola HBC insiders sold more 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. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Coca-Cola HBC better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Coca-Cola HBC insiders own about UK£91m worth of shares (which is 0.7% of the company). I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Does This Data Suggest About Coca-Cola HBC Insiders?

Insiders haven't bought Coca-Cola HBC stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Coca-Cola HBC makes money, and is growing profits. 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. In terms of investment risks, we've identified 1 warning sign with Coca-Cola HBC and understanding this should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.