Insiders were net sellers of Corpay, Inc.'s (NYSE:CPAY ) stock during the past year. That is, insiders sold more stock than they bought.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Corpay
Over the last year, we can see that the biggest insider sale was by the Group President of Vehicle Payments in Europe and Australasia, Alan King, for US$582k worth of shares, at about US$290 per share. So what is clear is that an insider saw fit to sell at around the current price of US$283. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Alan King.
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!
I will like Corpay better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Corpay Insiders Are Selling The Stock
Over the last three months, we've seen significant insider selling at Corpay. In total, Group President of Vehicle Payments in Europe and Australasia Alan King sold US$582k worth of shares in that time, and we didn't record any purchases whatsoever. This may suggest that some insiders think that the shares are not cheap.
Insider Ownership Of Corpay
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Corpay insiders own 3.1% of the company, worth about US$675m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Corpay Tell Us?
An insider sold Corpay shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Corpay 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Corpay. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Corpay.
Of course Corpay 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.