Did Cobalt Blue Holdings Limited (ASX:COB) Insiders Sell Shares?
We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So we'll take a look at whether insiders have been buying or selling shares in Cobalt Blue Holdings Limited (ASX:COB).
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But it is perfectly logical to keep tabs on what insiders are doing. 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 Cobalt Blue Holdings
The Last 12 Months Of Insider Transactions At Cobalt Blue Holdings
The insider, Geoffrey Hill, made the biggest insider sale in the last 12 months. That single transaction was for AU$178k worth of shares at a price of AU$0.16 each. So it's clear an insider wanted to take some cash off the table, even below the current price of AU$0.17. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. While insider selling is not a positive sign, we can't be sure if it does mean insiders think the shares are fully valued, so it's only a weak sign. This single sale was just 12.6% of Geoffrey Hill's stake. The only individual insider seller over the last year was Geoffrey Hill.
In the last twelve months insiders purchased 430k shares for AU$84k. But they sold 2.1m for AU$320k. Geoffrey Hill ditched 2.1m shares over the year. The average price per share was AU$0.15. You can see the insider transactions (by 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
Does Cobalt Blue Holdings Boast High 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. Our data indicates that Cobalt Blue Holdings insiders own about AU$3.3m worth of shares (which is 13% of the company). However, it's possible that insiders might have an indirect interest through a more complex structure. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Cobalt Blue Holdings Tell Us?
It doesn't really mean much that no insider has traded Cobalt Blue Holdings shares in the last quarter. Our analysis of Cobalt Blue Holdings insider transactions leaves us unenthusiastic. And usually insiders own more stock in the company, according to our data. I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
Of course Cobalt Blue Holdings may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
