This Insider Has Just Sold Shares In Consolidated Water

Investors may wish to note that the Independent Director of Consolidated Water Co. Ltd., Clarence Flowers, recently netted US$86k from selling stock, receiving an average price of US$26.12. However we note that the sale only shrunk their holding by 1.1%.

Check out our latest analysis for Consolidated Water

The Last 12 Months Of Insider Transactions At Consolidated Water

The Independent Director, Raymond Whittaker, made the biggest insider sale in the last 12 months. That single transaction was for US$142k worth of shares at a price of US$17.77 each. That means that an insider was selling shares at slightly below the current price (US$25.44). 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was 62% of Raymond Whittaker's stake.

In the last year Consolidated Water insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

I will like Consolidated Water 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

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Consolidated Water insiders own about US$22m worth of shares. That equates to 5.4% 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 Consolidated Water Insiders?

An insider hasn't bought Consolidated Water stock in the last three months, but there was some selling. And even if we look at the last year, we didn't see any purchases. On the plus side, Consolidated Water makes money, and is growing profits. 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. For instance, we've identified 3 warning signs for Consolidated Water (1 doesn't sit too well with us) you should be aware of.

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. 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.