Bullish Cable One, Inc. (NYSE:CABO) insiders filled their treasuries with US$1.9m worth of stock over last year
Quite a few insiders have dramatically grown their holdings in Cable One, Inc. (NYSE:CABO) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Cable One
The Last 12 Months Of Insider Transactions At Cable One
In the last twelve months, the biggest single purchase by an insider was when Lead Independent Director Thomas Gayner bought US$589k worth of shares at a price of US$1,178 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$689). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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.
In the last twelve months insiders purchased 1.75k shares for US$1.9m. But they sold 280.00 shares for US$203k. In the last twelve months there was more buying than selling by Cable One insiders. 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!
Cable One is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Cable One Have Sold Stock Recently
There was substantially more insider selling, than buying, of Cable One shares over the last three months. In total, Senior Vice President of Business Services & Emerging Markets Christopher Boone sold US$163k worth of shares in that time. Meanwhile Lead Independent Director Thomas Gayner bought US$71k worth. We don't view these transactions as a positive sign.
Insider Ownership
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. It's great to see that Cable One insiders own 11% of the company, worth about US$420m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Cable One Insiders?
Unfortunately, there has been more insider selling of Cable One stock, than buying, in the last three months. On the other hand, the insider transactions over the last year are encouraging. We are also comforted by the high levels of insider ownership. So we're happy to look past recent trading. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. When we did our research, we found 3 warning signs for Cable One (1 is a bit concerning!) that we believe deserve your full attention.
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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