Have CoreCivic Insiders Been Selling Stock?

Some CoreCivic, Inc. (NYSE:CXW) shareholders may be a little concerned to see that the Executive VP & CFO, David Garfinkle, recently sold a substantial US$1.2m worth of stock at a price of US$24.20 per share. That sale reduced their total holding by 21% which is hardly insignificant, but far from the worst we've seen.

See our latest analysis for CoreCivic

CoreCivic Insider Transactions Over The Last Year

Notably, that recent sale by David Garfinkle is the biggest insider sale of CoreCivic shares that we've seen in the last year. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$21.43. So it may not tell us anything about how insiders feel about the current share price.

CoreCivic insiders didn't buy any shares over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of CoreCivic

For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. CoreCivic insiders own about US$48m worth of shares. That equates to 2.0% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At CoreCivic Tell Us?

Insiders sold CoreCivic shares recently, but they didn't buy any. And there weren't any purchases to give us comfort, over the last year. On the plus side, CoreCivic makes money, and is growing profits. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CoreCivic. Case in point: We've spotted 4 warning signs for CoreCivic you should be aware of, and 1 of them is concerning.

But note: CoreCivic 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 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.