We'd be surprised if The Cooper Companies, Inc. (NYSE:COO) shareholders haven't noticed that the Independent Director, Gary Petersmeyer, recently sold US$123k worth of stock at US$411 per share. The eyebrow raising move amounted to a reduction of 15% in their holding.
Cooper Companies Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Senior VP of Finance & Tax and Chief Accounting Officer, Agostino Ricupati, for US$314k worth of shares, at about US$398 per share. So it's clear an insider wanted to take some cash off the table, even slightly below the current price of US$403. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 42% of Agostino Ricupati's stake.
Cooper Companies insiders didn't buy any shares over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Insider Ownership of Cooper Companies
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. Cooper Companies insiders own about US$117m worth of shares (which is 0.6% of the company). 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 Cooper Companies Insider Transactions Indicate?
An insider sold stock recently, but they haven't been buying. And there weren't any purchases to give us comfort, over the last year. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For example - Cooper Companies has 2 warning signs we think you should be aware of.
Of course Cooper Companies may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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.