Possible bearish signals as Campbell Soup Company (NYSE:CPB) insiders disposed of US$634k worth of stock

By
Simply Wall St
Published
September 27, 2021
NYSE:CPB
Source: Shutterstock

Campbell Soup Company (NYSE:CPB) shareholders might have a reason to worry after multiple insiders sold their shares over the last year. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Campbell Soup

Campbell Soup Insider Transactions Over The Last Year

The insider, Craig Slavtcheff, made the biggest insider sale in the last 12 months. That single transaction was for US$342k worth of shares at a price of US$48.88 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$42.43. So it may not tell us anything about how insiders feel about the current share price.

In the last year Campbell Soup insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

insider-trading-volume
NYSE:CPB Insider Trading Volume September 27th 2021

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

Does Campbell Soup Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Campbell Soup insiders own 33% of the company, worth about US$4.3b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Campbell Soup Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Campbell Soup 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 Campbell Soup 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. While conducting our analysis, we found that Campbell Soup has 1 warning sign and it would be unwise to ignore it.

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, but not derivative transactions.

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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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