Insiders are probably glad they sold their shares in Columbus McKinnon Corporation (NASDAQ:CMCO) after 11% drop

Simply Wall St
April 11, 2022
Source: Shutterstock

By selling US$79k worth of Columbus McKinnon Corporation (NASDAQ:CMCO) stock at an average sell price of US$51.44 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$126m over the past week after the stock price dropped 11%, although insiders were able to minimize their losses

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Columbus McKinnon

The Last 12 Months Of Insider Transactions At Columbus McKinnon

In the last twelve months, the biggest single sale by an insider was when the Senior VP of Corporate Development, Alan Korman, sold US$79k worth of shares at a price of US$51.44 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$37.64. So it may not shed much light on insider confidence at current levels. Alan Korman was the only individual insider to sell over 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!

NasdaqGS:CMCO Insider Trading Volume April 11th 2022

I will like Columbus McKinnon better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does Columbus McKinnon Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Columbus McKinnon insiders own 1.7% of the company, worth about US$18m. 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 Columbus McKinnon Insiders?

There haven't been any insider transactions in the last three months -- that doesn't mean much. Still, the insider transactions at Columbus McKinnon in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Columbus McKinnon. For instance, we've identified 4 warning signs for Columbus McKinnon (1 can't be ignored) you should be aware of.

But note: Columbus McKinnon 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.

Discounted cash flow calculation for every stock

Simply Wall St does a detailed discounted cash flow calculation every 6 hours for every stock on the market, so if you want to find the intrinsic value of any company just search here. It’s FREE.

Make Confident Investment Decisions

Simply Wall St's Editorial Team provides unbiased, factual reporting on global stocks using in-depth fundamental analysis.
Find out more about our editorial guidelines and team.