It is not uncommon to see companies perform well in the years after insiders buy shares. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Casey’s General Stores, Inc. (NASDAQ:CASY).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, such insiders must disclose their trading activities, and not trade on inside information.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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’.
Casey’s General Stores Insider Transactions Over The Last Year
Director Cara Heiden made the biggest insider purchase in the last 12 months. That single transaction was for US$439k worth of shares at a price of US$110 each. That implies that an insider found the current (approximate) price enticing. Of course they may have changed their mind. But this suggests they are optimistic. We generally consider it a positive if insiders have been buying on market, even if the share price has increased a bit since then.
Over the last year, we can see that insiders have bought 6.30k shares worth US$695k. On the other hand they divested 1.64k shares, for US$210k. In the last twelve months there was more buying than selling by Casey’s General Stores insiders. They paid about US$110 on average. Although they bought at below the recent price of US$137 per share, it is good to see that insiders are willing to invest in the company. You can see a visual depiction of insider transactions 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.
Insiders at Casey’s General Stores Have Sold Stock Recently
The last quarter saw substantial insider selling of Casey’s General Stores shares. In total, Senior Vice President of Human Resources Cindi Summers dumped US$210k 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.
Insider Ownership of Casey’s General Stores
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Casey’s General Stores insiders own 1.1% of the company, currently worth about US$56m based on the recent share price. 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 Casey’s General Stores Insider Transactions Indicate?
An insider sold Casey’s General Stores shares recently, but they didn’t buy any. In contrast, they appear keener if you look at the last twelve months. And insiders do own shares. So the recent selling doesn’t worry us too much. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Casey’s General Stores.
Of course Casey’s General Stores may not be the best stock to buy. So you may wish to see this free collection of high quality 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 firstname.lastname@example.org.