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Trade Alert: The Independent Director Of Conduent Incorporated (NASDAQ:CNDT), A. Letier, Has Just Spent US$182k Buying Shares

Potential Conduent Incorporated (NASDAQ:CNDT) shareholders may wish to note that the Independent Director, A. Letier, recently bought US$182k worth of stock, paying US$2.61 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 107%, potentially signalling some real optimism.

See our latest analysis for Conduent

Conduent Insider Transactions Over The Last Year

In fact, the recent purchase by A. Letier was the biggest purchase of Conduent shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of US$2.38. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. As a general rule, we feel more positive about a stock when an insider has bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. A. Letier was the only individual insider to buy over the year.

A. Letier purchased 72.50k shares over the year. The average price per share was US$2.80. 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!

NasdaqGS:CNDT Recent Insider Trading, March 11th 2020
NasdaqGS:CNDT Recent Insider Trading, March 11th 2020

Conduent is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

Insider Ownership of Conduent

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Conduent insiders own 4.1% of the company, worth about US$21m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Do The Conduent Insider Transactions Indicate?

It is good to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Conduent insiders are well aligned, and that they may think the share price is too low. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Conduent. For example - Conduent has 2 warning signs we think you should be aware of.

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.

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.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.

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