Corteva, Inc. (NYSE:CTVA) drops to US$31b and insiders who purchased earlier this year lose another US$32k

The recent 3.6% drop in Corteva, Inc.'s (NYSE:CTVA) stock could come as a blow to insiders who purchased US$279k worth of stock at an average buy price of US$47.38 over the past 12 months. Insiders purchase with the hope of seeing their investments increase in value over time. However, due to recent losses, their initial investment is now only worth US$247k, which is not great.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

Check out our latest analysis for Corteva

The Last 12 Months Of Insider Transactions At Corteva

Over the last year, we can see that the biggest insider purchase was by Senior VP & Chief Technology Officer Samuel Eathington for US$150k worth of shares, at about US$45.57 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$41.87). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Corteva insiders may have bought shares in the last year, but they didn't sell any. 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!

Corteva is not the only stock insiders are buying. So take a peek at this free list of growing companies with 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Corteva insiders own 0.09% of the company, worth about US$27m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Corteva Insider Transactions Indicate?

It doesn't really mean much that no insider has traded Corteva shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Corteva and we see no evidence to suggest they are worried about the future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Corteva has 1 warning sign we think you should be aware of.

Of course Corteva 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.
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