Bullish Cable One, Inc. (NYSE:CABO) investors are yet to receive a pay off on their US$2.6m bet
Insiders who acquired US$2.6m worth of Cable One, Inc.'s (NYSE:CABO) stock at an average price of US$1,201 in the past 12 months may be dismayed by the recent 22% price decline. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only US$1.5m.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Cable One
Cable One Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Wallace Weitz for US$720k worth of shares, at about US$1,440 per share. That means that an insider was happy to buy shares at above the current price of US$683. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 2.15k shares worth US$2.6m. On the other hand they divested 129.00 shares, for US$215k. In total, Cable One insiders bought more than they sold over the last year. Their average price was about US$1,201. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Cable One Insiders Bought Stock Recently
There has been significantly more insider buying, than selling, at Cable One, over the last three months. In total, two insiders bought US$1.8m worth of shares in that time. But we did see Senior Vice President of Marketing & Sales James Obermeyer sell shares worth US$40k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
Insider Ownership Of Cable One
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. Cable One insiders own about US$426m worth of shares (which is 11% of the company). 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 Cable One Tell Us?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Cable One. Looks promising! 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. To help with this, we've discovered 2 warning signs (1 is a bit unpleasant!) that you ought to be aware of before buying any shares in Cable One.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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.
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