Don't Ignore The Fact That This Insider Just Sold Some Shares In Ceridian HCM Holding Inc. (NYSE:CDAY)

Simply Wall St
May 12, 2022
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Anyone interested in Ceridian HCM Holding Inc. (NYSE:CDAY) should probably be aware that a company insider, Rakesh Subramanian, recently divested US$189k worth of shares in the company, at an average price of US$53.00 each. That sale was 26% of their holding, so it does make us raise an eyebrow.

View our latest analysis for Ceridian HCM Holding

The Last 12 Months Of Insider Transactions At Ceridian HCM Holding

In the last twelve months, the biggest single sale by an insider was when the Director, Thomas Hagerty, sold US$7.4m worth of shares at a price of US$124 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The silver lining is that this sell-down took place above the latest price (US$50.23). So it is hard to draw any strong conclusion from it.

Insiders in Ceridian HCM Holding didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

NYSE:CDAY Insider Trading Volume May 12th 2022

I will like Ceridian HCM Holding 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 Ceridian HCM Holding

Many investors like to check how much of a company is owned by 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. Ceridian HCM Holding insiders own about US$37m worth of shares. That equates to 0.5% 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.

What Might The Insider Transactions At Ceridian HCM Holding Tell Us?

Insiders sold Ceridian HCM Holding shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. So we'd only buy after careful consideration. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Ceridian HCM Holding and understanding these should be part of your investment process.

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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