CM.com N.V. (AMS:CMCOM) insiders who sold €10m worth of stock earlier this year are probably glad they did so as market cap slides to €527m

By selling €10m worth of CM.com N.V. (AMS:CMCOM) stock at an average sell price of €41.00 over the last year, insiders seemed to have made the most of their holdings. The company's market valuation decreased by €62m after the stock price dropped 10% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for CM.com

CM.com Insider Transactions Over The Last Year

In the last twelve months, the biggest single sale by an insider was when the Founder, Gilbert Franciscus Adrianus Gooijers, sold €5.1m worth of shares at a price of €41.00 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is €18.22. So it may not shed much light on insider confidence at current levels.

Insiders in CM.com didn't buy any shares in the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like CM.com better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of CM.com

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. CM.com insiders own 52% of the company, currently worth about €273m 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.

So What Does This Data Suggest About CM.com Insiders?

It doesn't really mean much that no insider has traded CM.com shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the CM.com insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for CM.com that deserve your attention before buying any shares.

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, but not derivative transactions.

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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.