Stock Analysis

As Comstock Holding Companies, Inc.'s (NASDAQ:CHCI)) market cap dropped by US$4.4m, insiders who sold US$642k worth of stock were able to offset their losses

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NasdaqCM:CHCI
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Over the past year, insiders sold US$642k worth of Comstock Holding Companies, Inc. (NASDAQ:CHCI) stock at an average price of US$6.40 per share allowing them to get the most out of their money. The company's market valuation decreased by US$4.4m after the stock price dropped 11% over the past week, but insiders were spared from painful losses.

While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Comstock Holding Companies

The Last 12 Months Of Insider Transactions At Comstock Holding Companies

The Executive VP of Strategy and Corporate Development & Director, Joseph Squeri, made the biggest insider sale in the last 12 months. That single transaction was for US$534k worth of shares at a price of US$6.54 each. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$4.47. So it may not shed much light on insider confidence at current levels.

Insiders in Comstock Holding Companies didn't buy any shares in 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!

insider-trading-volume
NasdaqCM:CHCI Insider Trading Volume October 7th 2021

If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.

Does Comstock Holding Companies Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Comstock Holding Companies insiders own about US$25m worth of shares (which is 68% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Comstock Holding Companies Tell Us?

It doesn't really mean much that no insider has traded Comstock Holding Companies shares in the last quarter. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Comstock Holding Companies insiders selling. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. When we did our research, we found 4 warning signs for Comstock Holding Companies (1 makes us a bit uncomfortable!) that we believe deserve your full attention.

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, but not derivative transactions.

Valuation is complex, but we're helping make it simple.

Find out whether Comstock Holding Companies is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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About NasdaqCM:CHCI

Comstock Holding Companies

Comstock Holding Companies, Inc. develops, operates, and manages of mixed-use and transit-oriented properties primarily in the Washington, D.C.

The Snowflake is a visual investment summary with the score of each axis being calculated by 6 checks in 5 areas.

Analysis AreaScore (0-6)
Valuation4
Future Growth0
Past Performance3
Financial Health6
Dividends0

Read more about these checks in the individual report sections or in our analysis model.

Flawless balance sheet and good value.