We'd be surprised if Coty Inc. (NYSE:COTY) shareholders haven't noticed that the Lead Independent Director, Robert Singer, recently sold US$373k worth of stock at US$10.66 per share. On the bright side, that sale was only 7.8% of their holding, so we doubt it's very meaningful, on its own.
The Last 12 Months Of Insider Transactions At Coty
In fact, the recent sale by Lead Independent Director Robert Singer was not their only trade of Coty shares this year. They previously purchased US$497k worth of shares at a price of US$6.63 per share. Even though the purchase was made at a significantly lower price than the recent price (US$10.70), we still think insider buying is a positive. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
Over the last year, we can see that insiders have bought 294.83k shares worth US$2.0m. On the other hand they divested 35.00k shares, for US$373k. In the last twelve months there was more buying than selling by Coty insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Coty
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. Coty insiders own about US$292m worth of shares (which is 3.3% of the company). 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 Coty Insiders?
An insider hasn't bought Coty stock in the last three months, but there was some selling. On the other hand, the insider transactions over the last year are encouraging. On top of that, insiders own a significant portion of the company. So the recent selling doesn't worry us. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coty. Every company has risks, and we've spotted 3 warning signs for Coty you should know about.
Of course Coty 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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