President Of Chesapeake Utilities Sold 27% Of Their Shares
We wouldn't blame Chesapeake Utilities Corporation (NYSE:CPK) shareholders if they were a little worried about the fact that Jeffry Householder, the President recently netted about US$1.6m selling shares at an average price of US$127. That sale reduced their total holding by 27% which is hardly insignificant, but far from the worst we've seen.
Chesapeake Utilities Insider Transactions Over The Last Year
In fact, the recent sale by Jeffry Householder was the biggest sale of Chesapeake Utilities shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of US$125. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
In the last year Chesapeake Utilities 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 click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
See our latest analysis for Chesapeake Utilities
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Does Chesapeake Utilities 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. I reckon it's a good sign if insiders own a significant number of shares in the company. Chesapeake Utilities insiders own about US$33m worth of shares. That equates to 1.1% 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 Chesapeake Utilities Insiders?
Insiders sold Chesapeake Utilities shares recently, but they didn't buy any. Looking to the last twelve months, our data doesn't show any insider buying. But since Chesapeake Utilities is profitable and growing, we're not too worried by this. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We'd practice some caution before buying! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. When we did our research, we found 3 warning signs for Chesapeake Utilities (1 can't be ignored!) that we believe deserve your full attention.
But note: Chesapeake Utilities may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.