Have Cohu, Inc. (NASDAQ:COHU) Insiders Been Selling Their Stock?

We'd be surprised if Cohu, Inc. (NASDAQ:COHU) shareholders haven't noticed that the Independent Director, Andrew Caggia, recently sold US$229k worth of stock at US$47.24 per share. That sale was 25% of their holding, so it does make us raise an eyebrow.

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The Last 12 Months Of Insider Transactions At Cohu

Over the last year, we can see that the biggest insider sale was by the President, Luis Müller, for US$1.0m worth of shares, at about US$35.55 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$45.14. 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 14% of Luis Müller's holding.

Cohu insiders didn't buy any shares 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 Cohu 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 Cohu

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. Cohu insiders own about US$43m worth of shares. That equates to 2.2% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

So What Does This Data Suggest About Cohu Insiders?

Insiders haven't bought Cohu stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. While insiders do own shares, they don't own a heap, and they have been selling. So we'd only buy after careful consideration. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Cohu has 3 warning signs we think you should be aware of.

But note: Cohu may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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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