By selling US$911k worth of Coda Octopus Group, Inc. (NASDAQ:CODA) stock at an average sell price of US$9.15 over the last year, insiders seemed to have made the most of their holdings. The company's market worth decreased by US$6.5m over the past week after the stock price dropped 11%, although insiders were able to minimize their losses
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Coda Octopus Group
The insider, Niels Sondergaard, made the biggest insider sale in the last 12 months. That single transaction was for US$492k worth of shares at a price of US$9.05 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$5.01. So it may not tell us anything about how insiders feel about the current share price.
Coda Octopus Group insiders didn't buy any shares over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Coda Octopus Group
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Coda Octopus Group insiders own 46% of the company, worth about US$25m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Coda Octopus Group Insider Transactions Indicate?
The fact that there have been no Coda Octopus Group insider transactions recently certainly doesn't bother us. It's heartening that insiders own plenty of stock, but we'd like to see more insider buying, since the last year of Coda Octopus Group insider transactions don't fill us with confidence. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coda Octopus Group. Case in point: We've spotted 2 warning signs for Coda Octopus Group you should be aware of.
But note: Coda Octopus Group 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.
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.