Insider Sellers Might Regret Selling CM.com Shares at a Lower Price Than Current Market Value

CM.com N.V.'s (AMS:CMCOM) stock price has dropped 10% in the previous week, but insiders who sold €685k in stock over the past year have had less luck. Insiders might have been better off holding onto their shares, given that the average selling price of €7.06 is still below the current share price.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At CM.com

In the last twelve months, the biggest single sale by an insider was when the Co-Founder, Gilbert Franciscus Adrianus Gooijers, sold €67k worth of shares at a price of €6.89 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of €6.01. So it is hard to draw any strong conclusion from it.

CM.com insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for CM.com

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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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CM.com insiders own 53% of the company, currently worth about €93m 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 heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of CM.com insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CM.com. At Simply Wall St, we found 1 warning sign for CM.com that deserve your attention before buying any shares.

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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.