Cosmos Holdings Inc. (NASDAQ:COSM) insiders placed bullish bets worth US$6.0m in the last 12 months
In the last year, multiple insiders have substantially increased their holdings of Cosmos Holdings Inc. (NASDAQ:COSM) stock, indicating that insiders' optimism about the company's prospects has increased.
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 Cosmos Holdings
The Last 12 Months Of Insider Transactions At Cosmos Holdings
Over the last year, we can see that the biggest insider purchase was by Chairman & CEO Grigorios Siokas for US$3.0m worth of shares, at about US$6.00 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$3.30). It's very possible they regret the purchase, but it's more likely they are bullish about the company. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels. Notably Grigorios Siokas was also the biggest seller.
Over the last year, we can see that insiders have bought 1.10m shares worth US$6.0m. On the other hand they divested 1.77m shares, for US$1.9m. In total, Cosmos Holdings insiders bought more than they sold 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Cosmos Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Cosmos Holdings Insiders Bought Stock Recently
Over the last quarter, Cosmos Holdings insiders have spent a meaningful amount on shares. We can see that Chairman & CEO Grigorios Siokas paid US$750k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Does Cosmos Holdings 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. Cosmos Holdings insiders own about US$25m worth of shares (which is 44% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Cosmos Holdings Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Cosmos Holdings. One for the watchlist, at least! 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. To that end, you should learn about the 4 warning signs we've spotted with Cosmos Holdings (including 1 which is a bit unpleasant).
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.
