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Should You Take Comfort From Insider Transactions At Cooper Tire & Rubber Company (NYSE:CTB)?

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Simply Wall St
·3 min read
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It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So shareholders might well want to know whether insiders have been buying or selling shares in Cooper Tire & Rubber Company (NYSE:CTB).

What Is Insider Buying?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

Insider transactions are not the most important thing when it comes to long-term investing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise'.

Check out our latest analysis for Cooper Tire & Rubber

Cooper Tire & Rubber Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Director Kathryn Dickson for US$60k worth of shares, at about US$24.84 per share. Even though the purchase was made at a significantly lower price than the recent price (US$40.03), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

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!

insider-trading-volume
insider-trading-volume

Cooper Tire & Rubber 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.

Insider Ownership of Cooper Tire & Rubber

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Cooper Tire & Rubber insiders own about US$12m worth of shares. That equates to 0.6% 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 Cooper Tire & Rubber Insiders?

It doesn't really mean much that no insider has traded Cooper Tire & Rubber shares in the last quarter. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Cooper Tire & Rubber and we see no evidence to suggest they are worried about the future. Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Cooper Tire & Rubber.

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.

This article by Simply Wall St is general in nature. 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.