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Multiple insiders secured a larger position in CME Group Inc. (NASDAQ:CME) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for CME Group
The Last 12 Months Of Insider Transactions At CME Group
Over the last year, we can see that the biggest insider purchase was by Independent Director William Shepard for US$8.3m worth of shares, at about US$170 per share. That means that an insider was happy to buy shares at around the current price of US$185. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for CME Group share holders is that insiders were buying at near the current price.
In the last twelve months insiders purchased 52.45k shares for US$8.9m. But they sold 10.15k shares for US$2.1m. In the last twelve months there was more buying than selling by CME Group insiders. 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At CME Group Have Bought Stock Recently
It's good to see that CME Group insiders have made notable investments in the company's shares. We can see that Independent Director William Shepard paid US$94k for shares in the company. No-one sold. This makes one think the business has some good points.
Does CME Group Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. CME Group insiders own 0.3% of the company, currently worth about US$232m 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.