Insiders At CEMEX. de Sold US$199m In Stock, Alluding To Potential Weakness
Over the past year, many CEMEX, S.A.B. de C.V. (BMV:CEMEXCPO) insiders sold a significant stake in the company which may have piqued investors' interest. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, if numerous insiders are selling, shareholders should investigate more.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At CEMEX. de
The Executive Vice President of Corporate Affairs, Mauricio Doehner Cobian, made the biggest insider sale in the last 12 months. That single transaction was for Mex$160m worth of shares at a price of Mex$173 each. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. The good news is that this large sale was at well above current price of Mex$19.52. So it is hard to draw any strong conclusion from it.
All up, insiders sold more shares in CEMEX. de than they bought, over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
View our latest analysis for CEMEX. de
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).
Insiders At CEMEX. de Have Sold Stock Recently
We've seen more insider selling than insider buying at CEMEX. de recently. We note insiders cashed in Mex$199m worth of shares. Meanwhile insider Lorenzo Zambrano bought Mex$6.9m worth , as we said above . Since the selling really does outweigh the buying, we'd say that these transactions may suggest that some insiders feel the shares are not cheap.
Insider Ownership Of CEMEX. de
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with 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. It's great to see that CEMEX. de insiders own 3.2% of the company, worth about Mex$9.1b. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The CEMEX. de Insider Transactions Indicate?
The insider sales have outweighed the insider buying, at CEMEX. de, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. You'd be interested to know, that we found 4 warning signs for CEMEX. de and we suggest you have a look.
Of course CEMEX. de may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.