We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. 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 before you buy or sell Cantel Medical Corp. (NYSE:CMD), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
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. For example, a Colombia University study found that ‘insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers’.
Cantel Medical Insider Transactions Over The Last Year
Chairman and Member of Office of the Chairman Charles Diker made the biggest insider sale in the last 12 months. That single transaction was for US$2.3m worth of shares at a price of US$119 each. While the sale doesn’t make us feel confident, we do note it was conducted at a price well above the current share price, which is US$71.73. So it is hard to draw any strong conclusion from it.
Over the last year, we note insiders sold 88.17k shares worth US$9.6m. In total, Cantel Medical insiders sold more than they bought over the last year. The average sell price was around US$109. We are not joyful about insider selling. However, we do note that the average sale price was significantly higher than the current share price (which is US$71.73). You can see the insider transactions over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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Cantel Medical Insiders Are Selling The Stock
The last quarter saw substantial insider selling of Cantel Medical shares. Specifically, Executive VP Eric Nodiff ditched US$270k worth of shares in that time, and we didn’t record any purchases whatsoever. Overall this makes us a bit cautious, but it’s not the be all and end all.
Insider Ownership of Cantel Medical
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Cantel Medical insiders own 11% of the company, currently worth about US$323m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Cantel Medical Insider Transactions Indicate?
An insider sold stock recently, but they haven’t been buying. And even if we look to the last year, we didn’t see any purchases. On the plus side, Cantel Medical makes money, and is growing profits. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn’t make us feel confident about the company. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Cantel Medical.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at email@example.com.