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 CONSOL Energy Inc. (NYSE:CEIX), you may well want to know whether insiders have been buying or selling.
Do Insider Transactions Matter?
It is perfectly legal for company insiders, including board members, to buy and sell stock in a company. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. 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.'
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CONSOL Energy Insider Transactions Over The Last Year
The Director, John Mills, made the biggest insider sale in the last 12 months. That single transaction was for US$262k worth of shares at a price of US$44.00 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of US$28.97. So it may not shed much light on insider confidence at current levels.
In the last twelve months insiders netted US$329k for 7738 shares sold. CONSOL Energy insiders didn't buy any shares over the last year. 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!
If you are like me, then you will not want to miss this free list of growing companies that insiders are buying.
CONSOL Energy Insiders Are Selling The Stock
The last three months saw significant insider selling at CONSOL Energy. Specifically, Senior VP of Coal Marketing & Chief Commercial Officer James McCaffrey ditched US$67k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Does CONSOL Energy 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. Insiders own 1.1% of CONSOL Energy shares, worth about US$8.6m, according to our data. We do generally prefer see higher levels of insider ownership.
So What Does This Data Suggest About CONSOL Energy Insiders?
An insider hasn't bought CONSOL Energy stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, CONSOL Energy makes money, and is growing profits. When you combine this with the relatively low insider ownership, we are very cautious about the stock. So we're not rushing to buy, to say the least. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
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.
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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.