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Those following along with Cable One, Inc. (NYSE:CABO) will no doubt be intrigued by the recent purchase of shares by Wallace Weitz, Independent Director of the company, who spent a stonking US$982k on stock at an average price of US$246. That increased their holding by a full 267%, which arguably implies the sort of confidence required for a shy sweet-natured nerd to ask the most popular kid in the school to go out on a date.
See our latest analysis for Cable One
The Last 12 Months Of Insider Transactions At Cable One
In fact, the recent purchase by Wallace Weitz was the biggest purchase of Cable One shares made by an insider individual in the last twelve months, according to our records. Even though the purchase was made at a significantly lower price than the recent price (US$279), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Wallace Weitz bought a total of 5.00k shares over the year at an average price of US$270. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Insider Ownership Of Cable One
For a common shareholder, it is worth checking how many shares are held by company 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 Cable One insiders own 9.9% of the company, worth about US$159m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Cable One Insiders?
It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest Cable One insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To that end, you should learn about the 4 warning signs we've spotted with Cable One (including 1 which doesn't sit too well with us).