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Many The Coca-Cola Company (NYSE:KO) insiders ditched their stock over the past year, which may be of interest to the company's shareholders. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, if numerous insiders are selling, shareholders should investigate more.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Coca-Cola
The Last 12 Months Of Insider Transactions At Coca-Cola
The Chairman & CEO, James Robert Quincey, made the biggest insider sale in the last 12 months. That single transaction was for US$15m worth of shares at a price of US$60.94 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$68.87. 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. It is worth noting that this sale was only 33% of James Robert Quincey's holding.
In the last year Coca-Cola insiders didn't buy any company stock. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.
Insiders At Coca-Cola Have Sold Stock Recently
The last three months saw significant insider selling at Coca-Cola. In total, Executive VP and Global General Counsel Monica Douglas dumped US$698k 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 Coca-Cola
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that Coca-Cola insiders own 0.7% of the company, worth about US$2.0b. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.