Charter Communications, Inc. (NASDAQ:CHTR) insiders who sold US$62m worth of stock earlier this year are probably glad they did so as market cap slides to US$68b
By selling US$62m worth of Charter Communications, Inc. (NASDAQ:CHTR) stock at an average sell price of US$663 over the last year, insiders seemed to have made the most of their holdings. After the stock price dropped 8.4% last week, the company's market value declined by US$5.5b, but insiders were able to mitigate their losses.
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 Charter Communications
The Last 12 Months Of Insider Transactions At Charter Communications
The Chairman & CEO, Thomas Rutledge, made the biggest insider sale in the last 12 months. That single transaction was for US$59m worth of shares at a price of US$675 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$372. So it may not shed much light on insider confidence at current levels.
In total, Charter Communications insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does Charter Communications Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. Charter Communications insiders own about US$202m worth of shares (which is 0.3% 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 Charter Communications Tell Us?
The fact that there have been no Charter Communications insider transactions recently certainly doesn't bother us. It's great to see high levels of insider ownership, but looking back over the last year, we don't gain confidence from the Charter Communications insiders selling. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Charter Communications. While conducting our analysis, we found that Charter Communications has 1 warning sign and it would be unwise to ignore this.
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.
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