Trade Alert: The Group Chief Information Officer Of Cavotec SA (STO:CCC), Giorgio Lingiardi, Has Sold Some Shares Recently

Anyone interested in Cavotec SA (STO:CCC) should probably be aware that the Group Chief Information Officer, Giorgio Lingiardi, recently divested kr1.1m worth of shares in the company, at an average price of kr22.32 each. Equally important, that sale actually reduced their holding by a full 56% which hardly makes us feel bullish about the stock.

View our latest analysis for Cavotec

The Last 12 Months Of Insider Transactions At Cavotec

Notably, that recent sale by Giorgio Lingiardi is the biggest insider sale of Cavotec shares that we've seen in the last year. So it's clear an insider wanted to take some cash off the table, even below the current price of kr23.10. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. We note that the biggest single sale was 56% of Giorgio Lingiardi's holding.

Over the last year, we can see that insiders have bought 32.00k shares worth kr613k. But insiders sold 62.00k shares worth kr1.4m. Over the last year we saw more insider selling of Cavotec shares, than buying. The sellers received a price of around €22.34, on average. It's not particularly great to see insiders were selling shares at below recent prices. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Insider Ownership of Cavotec

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Cavotec insiders own 10% of the company, worth about kr221m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Cavotec Insider Transactions Indicate?

The insider sales have outweighed the insider buying, at Cavotec, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. At Simply Wall St, we found 1 warning sign for Cavotec that deserve your attention before buying any shares.

But note: Cavotec may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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. 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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