Comerica Incorporated (NYSE:CMA) insiders sold US$789k worth of stock suggesting impending weakness.

By
Simply Wall St
Published
February 17, 2022
NYSE:CMA
Source: Shutterstock

Comerica Incorporated (NYSE:CMA) shareholders may have reason to be concerned, as several insiders sold their shares over the past year. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

See our latest analysis for Comerica

Comerica Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, James Weber, for US$285k worth of shares, at about US$75.00 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$100. 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. 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. We note that the biggest single sale was only 20% of James Weber's holding.

Insiders in Comerica 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!

insider-trading-volume
NYSE:CMA Insider Trading Volume February 17th 2022

I will like Comerica 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

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It appears that Comerica insiders own 0.5% of the company, worth about US$62m. 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 Does This Data Suggest About Comerica Insiders?

It doesn't really mean much that no insider has traded Comerica shares in the last quarter. Our analysis of Comerica insider transactions leaves us cautious. But it's good to see that insiders own shares in the company. 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. Every company has risks, and we've spotted 1 warning sign for Comerica you should know about.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

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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