Don't Ignore The Insider Selling In Cadre Holdings

Anyone interested in Cadre Holdings, Inc. (NYSE:CDRE) should probably be aware that the Lead Independent Director, Nicholas Sokolow, recently divested US$323k worth of shares in the company, at an average price of US$32.29 each. However, the silver lining is that the sale only reduced their total holding by 1.0%, so we're hesitant to read anything much into it, on its own.

View our latest analysis for Cadre Holdings

The Last 12 Months Of Insider Transactions At Cadre Holdings

The Executive Chairman & CEO, Warren Kanders, made the biggest insider sale in the last 12 months. That single transaction was for US$50m worth of shares at a price of US$35.00 each. So what is clear is that an insider saw fit to sell at around the current price of US$32.44. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

In the last year Cadre Holdings 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. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like Cadre Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Cadre Holdings

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. I reckon it's a good sign if insiders own a significant number of shares in the company. Cadre Holdings insiders own 36% of the company, currently worth about US$477m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Cadre Holdings Insider Transactions Indicate?

Insiders sold stock recently, but they haven't been buying. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Cadre Holdings makes money, and is growing profits. 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. In terms of investment risks, we've identified 3 warning signs with Cadre Holdings and understanding them should be part of your investment process.

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 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.