Insiders probably made the right decision selling US$62m worth of shares earlier this year as Charter Communications, Inc.'s (NASDAQ:CHTR)) stock dips by 4.9%.
Insiders seem to have made the most of their holdings by selling US$62m worth of Charter Communications, Inc. (NASDAQ:CHTR) stock at an average sell price of US$663 during the past year. The company’s market cap plunged by US$2.9b after price dropped by 4.9% last week but insiders were able to limit their loss to an extent.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Charter Communications
The Last 12 Months Of Insider Transactions At Charter Communications
Over the last year, we can see that the biggest insider sale was by the Chairman & CEO, Thomas Rutledge, for US$59m worth of shares, at about US$675 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$369. So it is hard to draw any strong conclusion from it.
In the last twelve months insiders purchased 29.95k shares for US$12m. But insiders sold 93.30k shares worth US$62m. All up, insiders sold more shares in Charter Communications than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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).
Insiders At Charter Communications Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Charter Communications. We can see that Lead Independent Director Eric Zinterhofer paid US$10m for shares in the company. No-one sold. That shows some optimism about the company's future.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Charter Communications insiders own 0.3% of the company, worth about US$211m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Charter Communications Tell Us?
The recent insider purchase is heartening. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by an insider suggests they are well aligned and optimistic. 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 assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Charter Communications.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity and low debt.
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.
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