Don't Ignore The Insider Selling In Post Holdings

We wouldn't blame Post Holdings, Inc. (NYSE:POST) shareholders if they were a little worried about the fact that Nicolas Catoggio, the President & CEO of Post Consumer Brands recently netted about US$708k selling shares at an average price of US$109. That's a big disposal, and it decreased their holding size by 15%, which is notable but not too bad.

Check out our latest analysis for Post Holdings

The Last 12 Months Of Insider Transactions At Post Holdings

The Independent Director, Robert Grote, made the biggest insider sale in the last 12 months. That single transaction was for US$1.8m worth of shares at a price of US$105 each. That means that an insider was selling shares at slightly below the current price (US$110). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was 86% of Robert Grote's stake.

Over the last year we saw more insider selling of Post Holdings shares, than buying. 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!

I will like Post Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Does Post 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Post Holdings insiders own 11% of the company, currently worth about US$696m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Post Holdings Insider Transactions Indicate?

Insiders haven't bought Post Holdings stock in the last three months, but there was some selling. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Post Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Case in point: We've spotted 2 warning signs for Post Holdings you should be aware of, and 1 of them is a bit concerning.

But note: Post 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 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.