Don't Ignore The Insider Selling In CoinShares International

Some CoinShares International Limited (STO:CS) shareholders may be a little concerned to see that the Non-Executive Chairman, Daniel Masters, recently sold a substantial kr11m worth of stock at a price of kr53.00 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 1.3%.

Check out our latest analysis for CoinShares International

The Last 12 Months Of Insider Transactions At CoinShares International

In fact, the recent sale by Non-Executive Chairman Daniel Masters was not their only sale of CoinShares International shares this year. Earlier in the year, they fetched kr30.11 per share in a -kr11m sale. That means that even when the share price was below the current price of kr55.00, an insider wanted to cash in some shares. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 2.3% of Daniel Masters's stake.

Over the last year we saw more insider selling of CoinShares International shares, than buying. 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!

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 CoinShares International

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. CoinShares International insiders own about kr3.1b worth of shares (which is 84% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At CoinShares International Tell Us?

Insiders haven't bought CoinShares International stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for CoinShares International you should be aware of.

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.