We wouldn't blame Cogent Communications Holdings, Inc. (NASDAQ:CCOI) shareholders if they were a little worried about the fact that David Schaeffer, the Founder recently netted about US$640k selling shares at an average price of US$72.55. However, that sale only accounted for 0.2% of their holding, so arguably it doesn't say much about their conviction.
The Last 12 Months Of Insider Transactions At Cogent Communications Holdings
In fact, the recent sale by Founder David Schaeffer was not their only sale of Cogent Communications Holdings shares this year. Earlier in the year, they fetched US$62.44 per share in a -US$4.7m sale. That means that even when the share price was below the current price of US$67.83, an insider wanted to cash in some shares. 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. This single sale was just 1.5% of David Schaeffer's stake.
In the last year Cogent Communications Holdings insiders didn't buy any company stock. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
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Insider Ownership Of Cogent Communications Holdings
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. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Cogent Communications Holdings insiders own 12% of the company, worth about US$371m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
What Might The Insider Transactions At Cogent Communications Holdings Tell Us?
Insiders sold Cogent Communications Holdings shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. On the plus side, Cogent Communications Holdings makes money, and is growing profits. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cogent Communications Holdings. Our analysis shows 5 warning signs for Cogent Communications Holdings (3 are concerning!) and we strongly recommend you look at these before investing.
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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.