Yahoo Finance Independent Director Louis Vachon Just Bought 28% More Shares In Molson Coors Beverage Company (NYSE:TAP)
Investors who take an interest in Molson Coors Beverage Company (NYSE:TAP) should definitely note that the Independent Director, Louis Vachon, recently paid US$46.04 per share to buy US$138k worth of the stock. That's a very decent purchase to our minds and it grew their holding by a solid 28%.
View our latest analysis for Molson Coors Beverage
The Last 12 Months Of Insider Transactions At Molson Coors Beverage
In the last twelve months, the biggest single sale by an insider was when the Vice Chairman of the Board, Andrew Molson, sold US$153k worth of shares at a price of US$47.12 per share. So what is clear is that an insider saw fit to sell at around the current price of US$45.57. While we don't usually like to see insider selling, it's more concerning if the sales take place 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). Andrew Molson was the only individual insider to sell shares in the last twelve months.
In the last twelve months insiders purchased 8.00k shares for US$325k. But they sold 3.24k shares for US$153k. In total, Molson Coors Beverage insiders bought more than they sold over the last year. The average buy price was around US$40.67. We don't deny that it is nice to see insiders buying stock in the company. However, you should keep in mind that they bought when the share price was meaningfully below today's levels. 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!
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.
Does Molson Coors Beverage 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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Molson Coors Beverage insiders own 0.5% of the company, worth about US$54m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Molson Coors Beverage Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Molson Coors Beverage insiders are well aligned, and that they may think the share price is too low. 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. Our analysis shows 3 warning signs for Molson Coors Beverage (1 can't be ignored!) and we strongly recommend you look at these before investing.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
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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