Bullish insiders at Cooper-Standard Holdings Inc. (NYSE:CPS) loaded up on US$1.2m of stock earlier this year
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Cooper-Standard Holdings Inc. (NYSE:CPS), it sends a favourable message to the company's shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
View our latest analysis for Cooper-Standard Holdings
Cooper-Standard Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Independent Director Stephen Van Oss for US$485k worth of shares, at about US$13.03 per share. That means that even when the share price was higher than US$5.83 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Cooper-Standard Holdings insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Cooper-Standard Holdings 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 Cooper-Standard Holdings Have Bought Stock Recently
It's good to see that Cooper-Standard Holdings insiders have made notable investments in the company's shares. Overall, four insiders shelled out US$731k for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
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. We usually like to see fairly high levels of insider ownership. Based on our data, Cooper-Standard Holdings insiders have about 2.5% of the stock, worth approximately US$2.6m. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Cooper-Standard Holdings Tell Us?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Cooper-Standard Holdings insiders are reasonably well aligned, and optimistic for the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Cooper-Standard Holdings is showing 2 warning signs in our investment analysis, and 1 of those is significant...
But note: Cooper-Standard Holdings 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.
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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.
