Stock Analysis

Have Mr. Cooper Group Inc. (NASDAQ:COOP) Insiders Been Selling Their Stock?

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NasdaqCM:COOP
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Anyone interested in Mr. Cooper Group Inc. (NASDAQ:COOP) should probably be aware that the Executive VP & Chief Legal Officer, Eldridge Burns, recently divested US$137k worth of shares in the company, at an average price of US$39.90 each. That sale was 13% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Mr. Cooper Group

Mr. Cooper Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Anthony Ebers, for US$3.1m worth of shares, at about US$36.93 per share. That means that an insider was selling shares at slightly below the current price (US$40.91). We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. 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. It is worth noting that this sale was only 29% of Anthony Ebers's holding.

In the last year Mr. Cooper Group insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NasdaqCM:COOP Insider Trading Volume September 4th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Does Mr. Cooper Group Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Mr. Cooper Group insiders own 3.5% of the company, worth about US$124m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Mr. Cooper Group Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. But it is good to see that Mr. Cooper Group is growing earnings. It is good to see high insider ownership, but the insider selling leaves us cautious. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Mr. Cooper Group.

But note: Mr. Cooper Group 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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What are the risks and opportunities for Mr. Cooper Group?

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related to single-family residences in the United States.

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Rewards

  • Trading at 80.3% below our estimate of its fair value

Risks

  • Earnings are forecast to decline by an average of 43.3% per year for the next 3 years

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About NasdaqCM:COOP

Mr. Cooper Group

Mr. Cooper Group Inc. provides servicing, origination, and transaction-based services related to single-family residences in the United States.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation5
Future Growth0
Past Performance2
Financial Health1
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Undervalued with questionable track record.