Who Has Been Selling Cobalt Blue Holdings Limited (ASX:COB) Shares?
We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Cobalt Blue Holdings Limited (ASX:COB), 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, 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 Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
See our latest analysis for Cobalt Blue Holdings
Cobalt Blue Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by Geoffrey Hill for AU$178k worth of shares, at about AU$0.16 per share. So we know that an insider sold shares at around the present share price of AU$0.16. While their view may have changed since the sale, this is not a particularly positive fact. Arguably, insider selling at around current prices should give us reason to reflect on whether the stock is fully valued at the moment. Geoffrey Hill was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 280.50k shares worth AU$63k. But insiders sold 1.14m shares worth AU$178k. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
I will like Cobalt Blue Holdings better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Insider Ownership
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. Cobalt Blue Holdings insiders own about AU$3.1m worth of shares. That equates to 15% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Cobalt Blue Holdings Insiders?
An insider sold Cobalt Blue Holdings shares recently, but they didn’t buy any. Despite some insider buying, the longer term picture doesn’t make us feel much more positive. Insiders own shares, but we’re still pretty cautious, given the history of sales. We’d think twice before buying! I like to dive deeper into how a company has performed in the past. You can find historic revenue and earnings in this detailed graph.
But note: Cobalt Blue Holdings may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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.
