Multiple insiders secured a larger position in Charter Communications, Inc. (NASDAQ:CHTR) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Charter Communications Insider Transactions Over The Last Year
The Lead Independent Director Eric Zinterhofer made the biggest insider purchase in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$377 each. So it's clear an insider wanted to buy, at around the current price, which is US$385. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Charter Communications insiders decided to buy shares at close to current prices.
Over the last year, we can see that insiders have bought 29.95k shares worth US$12m. But insiders sold 5.30k shares worth US$2.4m. Overall, Charter Communications insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Charter Communications Insiders Bought Stock Recently
It's good to see that Charter Communications insiders have made notable investments in the company's shares. Lead Independent Director Eric Zinterhofer spent US$10m on stock, and there wasn't any selling. This could be interpreted as suggesting a positive outlook.
Does Charter Communications Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Charter Communications insiders own 0.3% of the company, currently worth about US$208m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About Charter Communications Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. When combined with notable insider ownership, these factors suggest Charter Communications insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Charter Communications. You'd be interested to know, that we found 1 warning sign for Charter Communications and we suggest you have a look.
But note: Charter Communications 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, but not derivative transactions.
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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.
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