Trade Alert: Executive VP & Chief Innovation Officer Of CoreCivic Lucibeth Mayberry Has Sold Stock

We wouldn't blame CoreCivic, Inc. (NYSE:CXW) shareholders if they were a little worried about the fact that Lucibeth Mayberry, the Executive VP & Chief Innovation Officer recently netted about US$1.6m selling shares at an average price of US$21.49. That sale reduced their total holding by 36% which is hardly insignificant, but far from the worst we've seen.

We've discovered 2 warning signs about CoreCivic. View them for free.

CoreCivic Insider Transactions Over The Last Year

In fact, the recent sale by Lucibeth Mayberry was the biggest sale of CoreCivic shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$21.89). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 36% of Lucibeth Mayberry's stake.

Insiders in CoreCivic didn't buy any shares in the last year. 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!

Check out our latest analysis for CoreCivic

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

Does CoreCivic Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CoreCivic insiders own about US$60m worth of shares. That equates to 2.5% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The CoreCivic Insider Transactions Indicate?

An insider sold stock recently, but they haven't been buying. And even if we look at the last year, we didn't see any purchases. But since CoreCivic is profitable and growing, we're not too worried by this. Insiders own shares, but we're still pretty cautious, given the history of sales. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for CoreCivic (of which 1 is significant!) 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 of direct interests only, but not derivative transactions or indirect interests.

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