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Insiders at Crown Castle Inc. (NYSE:CCI) sold US$3.7m worth of stock, possibly indicating weakness in the future

Over the past year, many Crown Castle Inc. (NYSE:CCI) insiders sold a significant stake in the company which may have piqued investors' interest. When evaluating insider transactions, knowing whether insiders are buying versus if they selling is usually more beneficial, as the latter can be open to many interpretations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Crown Castle

The Last 12 Months Of Insider Transactions At Crown Castle

In the last twelve months, the biggest single sale by an insider was when the Executive VP & COO of Fiber, Christopher Levendos, sold US$2.1m worth of shares at a price of US$193 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$139. So it may not tell us anything about how insiders feel about the current share price.

In the last twelve months insiders purchased 5.91k shares for US$843k. But they sold 19.50k shares for US$3.7m. Over the last year we saw more insider selling of Crown Castle shares, than buying. The average sell price was around US$190. We are not joyful about insider selling. But we note that the selling, on average, was at well above the recently traded price of US$139. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
insider-trading-volume

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).

Crown Castle Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Crown Castle. Not only was there no selling that we can see, but they collectively bought US$397k worth of shares. This could be interpreted as suggesting a positive outlook.

Does Crown Castle Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Crown Castle insiders own about US$334m worth of shares (which is 0.6% 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.

So What Does This Data Suggest About Crown Castle Insiders?

It's certainly positive to see the recent insider purchases. On the other hand the transaction history, over the last year, isn't so positive. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Crown Castle. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Crown Castle.

Of course Crown Castle 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.

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

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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