Insiders who sold US$34m worth of CURO Group Holdings Corp. (NYSE:CURO) stock last year were handsomely rewarded

By
Simply Wall St
Published
March 23, 2022
NYSE:CURO
Source: Shutterstock

CURO Group Holdings Corp.'s (NYSE:CURO) stock rose 10% last week, but insiders who sold US$34m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$16.93, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for CURO Group Holdings

CURO Group Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Director, Chadwick Faulkner, for US$18m worth of shares, at about US$18.10 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$12.72. So it may not shed much light on insider confidence at current levels. Chadwick Faulkner was the only individual insider to sell over the last year.

Chadwick Faulkner ditched 2.00m shares over the year. The average price per share was US$16.93. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
NYSE:CURO Insider Trading Volume March 23rd 2022

I will like CURO Group Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Does CURO Group Holdings Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. CURO Group Holdings insiders own 47% of the company, currently worth about US$240m 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.

What Might The Insider Transactions At CURO Group Holdings Tell Us?

There haven't been any insider transactions in the last three months -- that doesn't mean much. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the CURO Group Holdings insiders selling. While we like knowing 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. To help with this, we've discovered 4 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in CURO Group Holdings.

But note: CURO Group Holdings 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, but not derivative transactions.

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