Trade Alert: President & CEO of Post Consumer Brands Of Post Holdings Nicolas Catoggio Has Sold Stock

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$1.1m selling shares at an average price of US$112. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.

See our latest analysis for Post Holdings

The Last 12 Months Of Insider Transactions At Post Holdings

The insider, 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. So it's clear an insider wanted to take some cash off the table, even below the current price of US$111. 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. 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. We note that the biggest single sale was 86% of Robert Grote's holding.

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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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.

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. Post Holdings insiders own 11% of the company, currently worth about US$732m 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.

So What Does This Data Suggest About Post Holdings Insiders?

Insiders haven't bought Post Holdings stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Post Holdings makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for Post Holdings (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

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 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.