We wouldn't blame Charter Communications, Inc. (NASDAQ:CHTR) shareholders if they were a little worried about the fact that Christopher Winfrey, the Chief Financial Officer recently netted about US$38m selling shares at an average price of US$596. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.
The Last 12 Months Of Insider Transactions At Charter Communications
In fact, the recent sale by Christopher Winfrey was the biggest sale of Charter Communications shares made by an insider individual in the last twelve months, according to our records. So it's clear an insider wanted to take some cash off the table, even below the current price of US$627. 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. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 27% of Christopher Winfrey's holding.
Charter Communications 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
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Does Charter Communications Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. 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's great to see that Charter Communications insiders own 0.3% of the company, worth about US$418m. 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 Charter Communications Insider Transactions Indicate?
Insiders haven't bought Charter Communications stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Charter Communications 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. When we did our research, we found 2 warning signs for Charter Communications (1 is potentially serious!) that we believe deserve your full attention.
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, but not derivative transactions.
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This article by Simply Wall St is general in nature. 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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