The fact that multiple CONSOL Energy Inc. (NYSE:CEIX) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for CONSOL Energy

The Last 12 Months Of Insider Transactions At CONSOL Energy

In the last twelve months, the biggest single sale by an insider was when the Independent Director, John Mills, sold US$1.9m worth of shares at a price of US$80.66 per share. That means that an insider was selling shares at slightly below the current price (US$101). As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was 92% of John Mills's stake.

Insiders in CONSOL Energy didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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CONSOL Energy Insiders Are Selling The Stock

The last quarter saw substantial insider selling of CONSOL Energy shares. Specifically, Independent Director Joseph Platt ditched US$1.0m worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.

Insider Ownership Of CONSOL Energy

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. Insiders own 1.9% of CONSOL Energy shares, worth about US$60m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At CONSOL Energy Tell Us?

An insider sold CONSOL Energy shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. On the plus side, CONSOL Energy makes money, and is growing profits. While insiders do own shares, they don't own a heap, and they have been selling. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CONSOL Energy. At Simply Wall St, we've found that CONSOL Energy has 2 warning signs (1 is a bit concerning!) that deserve your attention before going any further with your analysis.

Of course CONSOL Energy 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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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.