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In the last year, many The Coca-Cola Company (NYSE:KO) insiders sold a substantial stake in the company which may have sparked shareholders' attention. Knowing whether insiders are buying is usually more helpful when evaluating insider transactions, as insider selling can have various explanations. However, when multiple insiders sell stock over a specific duration, shareholders should take notice as that could possibly be a red flag.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Coca-Cola
The Last 12 Months Of Insider Transactions At Coca-Cola
Over the last year, we can see that the biggest insider sale was by the Executive VP & CFO, John Murphy, for US$3.3m worth of shares, at about US$62.29 per share. So what is clear is that an insider saw fit to sell at around the current price of US$59.26. While insider selling is a negative, to us, it is more negative if the shares are sold 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.
In total, Coca-Cola insiders sold more than they bought over the last year. 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!
For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Coca-Cola Insiders Are Selling The Stock
Over the last three months, we've seen notably more insider selling, than insider buying, at Coca-Cola. We note insiders cashed in US$2.9m worth of shares. On the flip side, insider Carolyn Everson spent US$61k on purchasing shares (as mentioned above) . Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Does Coca-Cola Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Coca-Cola insiders own 0.7% of the company, currently worth about US$1.7b 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.