This Insider Has Just Sold Shares In cbdMD, Inc. (NYSEMKT:YCBD)

Some cbdMD, Inc. (NYSEMKT:YCBD) shareholders may be a little concerned to see that the Chairman & Co-CEO, Martin Sumichrast, recently sold a substantial US$1.8m worth of stock at a price of US$4.43 per share. That sale reduced their total holding by 16% which is hardly insignificant, but far from the worst we've seen.

View our latest analysis for cbdMD

cbdMD Insider Transactions Over The Last Year

Notably, that recent sale by Martin Sumichrast is the biggest insider sale of cbdMD shares that we've seen in the last year. So we know that an insider sold shares at around the present share price of US$4.34. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.

All up, insiders sold more shares in cbdMD than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

I will like cbdMD better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership of cbdMD

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 29% of cbdMD shares, worth about US$65m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At cbdMD Tell Us?

An insider hasn't bought cbdMD stock in the last three months, but there was some selling. And our longer term analysis of insider transactions didn't bring confidence, either. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. 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. While conducting our analysis, we found that cbdMD has 2 warning signs and it would be unwise to ignore them.

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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