Some Costco Wholesale Corporation (NASDAQ:COST) shareholders may be a little concerned to see that the Consultant and Director Emeritus, Richard Libenson, recently sold a whopping US$508k worth of stock at a price of US$298 per share. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 2.2%.
Costco Wholesale Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Executive VP, Joseph Portera, sold US$4.2m worth of shares at a price of US$300 per share. So what is clear is that an insider saw fit to sell at around the current price of US$296. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.
Over the last year we saw more insider selling of Costco Wholesale shares, than buying. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Does Costco Wholesale Boast High Insider Ownership?
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Costco Wholesale insiders own 0.5% of the company, worth about US$705m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Do The Costco Wholesale Insider Transactions Indicate?
Insiders haven't bought Costco Wholesale stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. On the plus side, Costco Wholesale makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. Of course, the future is what matters most. So if you are interested in Costco Wholesale, you should check out this free report on analyst forecasts for the company.
Of course Costco Wholesale 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 firstname.lastname@example.org. 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.