Yahoo Finance Are Insiders Selling Coca-Cola HBC AG (LON:CCH) Stock?
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We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So before you buy or sell Coca-Cola HBC AG (LON:CCH), you may well want to know whether insiders have been buying or selling.
What Is Insider Selling?
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.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.'
See our latest analysis for Coca-Cola HBC
Coca-Cola HBC Insider Transactions Over The Last Year
The , Sotiris Yannopoulos, made the biggest insider sale in the last 12 months. That single transaction was for UK£85k worth of shares at a price of UK£26.04 each. So it's clear an insider wanted to take some cash off the table, even below the current price of UK£29.40. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. We note that the biggest single sale was only 2.6% of Sotiris Yannopoulos's holding. The only individual insider seller over the last year was Sotiris Yannopoulos.
Over the last year, we can see that insiders have bought 441.18 shares worth UK£13k. On the other hand they divested 3258 shares, for UK£85k. You can see the insider transactions (by individuals) 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders at Coca-Cola HBC Have Sold Stock Recently
We've seen more insider selling than insider buying at Coca-Cola HBC recently. In that time, Sotiris Yannopoulos dumped €85k worth of shares. Meanwhile insiders bought €13k worth, as we said above. Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership of Coca-Cola HBC
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. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Coca-Cola HBC insiders own 1.0% of the company, worth about UK£103m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Does This Data Suggest About Coca-Cola HBC Insiders?
The insider sales have outweighed the insider buying, at Coca-Cola HBC, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. But since Coca-Cola HBC is profitable and growing, we're not too worried by this. It is good to see high insider ownership, but the insider selling leaves us cautious. 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.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body.
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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.
