Some CME Group Inc. (NASDAQ:CME) shareholders may be a little concerned to see that insider Derek Sammann recently sold a substantial US$2.8m worth of stock at a price of US$221 per share. That's a big disposal, and it decreased their holding size by 30%, which is notable but not too bad.
Check out our latest analysis for CME Group
CME Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Chairman & CEO, Terrence Duffy, sold US$6.1m worth of shares at a price of US$204 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of US$218. 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. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 31% of Terrence Duffy's holding.
In total, CME Group insiders sold more than they bought over the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
NasdaqGS:CME Insider Trading Volume December 6th 2023
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Does CME Group Boast High 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. CME Group insiders own 0.3% of the company, currently worth about US$275m based on the recent share price. 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 CME Group Insiders?
The stark truth for CME Group is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since CME Group is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 2 warning signs for CME Group you should know about.
Of course CME Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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 of direct interests only, but not derivative transactions or indirect interests.
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