Have Insiders Sold Cadre Holdings Shares Recently?

Some Cadre Holdings, Inc. (NYSE:CDRE) shareholders may be a little concerned to see that the Executive Chairman & CEO, Warren Kanders, recently sold a substantial US$7.3m worth of stock at a price of US$33.95 per share. However, that sale only accounted for 1.6% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Cadre Holdings

The Last 12 Months Of Insider Transactions At Cadre Holdings

Notably, that recent sale by Executive Chairman & CEO Warren Kanders was not the only time they sold Cadre Holdings shares this year. They previously made an even bigger sale of -US$50m worth of shares at a price of US$35.00 per share. That means that an insider was selling shares at slightly below the current price (US$35.77). 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 9.6% of Warren Kanders's stake.

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!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Insider Ownership

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Cadre Holdings insiders own 36% of the company, worth about US$526m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Cadre Holdings Tell Us?

Insiders sold Cadre Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that Cadre Holdings is growing earnings. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that Cadre Holdings has 2 warning signs and it would be unwise to ignore these.

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.