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Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Cooper-Standard Holdings Inc. (NYSE:CPS), that sends out a positive message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Cooper-Standard Holdings
Cooper-Standard Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Lead Independent Director David Mastrocola for US$119k worth of shares, at about US$15.27 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$14.17). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months Cooper-Standard Holdings insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Cooper-Standard Holdings is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Cooper-Standard Holdings Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at Cooper-Standard Holdings. In total, insiders bought US$164k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cooper-Standard Holdings insiders own about US$12m worth of shares. That equates to 4.8% of the company. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Cooper-Standard Holdings Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Cooper-Standard Holdings shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Cooper-Standard Holdings. Our analysis shows 2 warning signs for Cooper-Standard Holdings (1 is concerning!) and we strongly recommend you look at them before investing.