Independent Director Eve Howard Sold A Bunch Of Shares In Cogent Communications Holdings

Anyone interested in Cogent Communications Holdings, Inc. (NASDAQ:CCOI) should probably be aware that the Independent Director, Eve Howard, recently divested US$287k worth of shares in the company, at an average price of US$82.02 each. That sale was 26% of their holding, so it does make us raise an eyebrow.

See our latest analysis for Cogent Communications Holdings

The Last 12 Months Of Insider Transactions At Cogent Communications Holdings

Over the last year, we can see that the biggest insider sale was by the Founder, David Schaeffer, for US$5.8m worth of shares, at about US$68.12 per share. That means that even when the share price was below the current price of US$79.40, an insider wanted to cash in some shares. 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 1.8% of David Schaeffer's holding.

In total, Cogent Communications Holdings insiders sold more than they bought 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!

I will like Cogent Communications Holdings better if I see some big insider buys. While we wait, check out this free list of undervalued and small cap stocks with considerable, recent, insider buying.

Insider Ownership Of Cogent Communications Holdings

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 Cogent Communications Holdings insiders own 10% of the company, worth about US$374m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Cogent Communications Holdings Tell Us?

Insiders sold Cogent Communications Holdings shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cogent Communications Holdings. To that end, you should learn about the 6 warning signs we've spotted with Cogent Communications Holdings (including 4 which are concerning).

Of course Cogent Communications Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality companies.

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 of direct interests only, but not derivative transactions or indirect interests.

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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.