We wouldn't blame Cadre Holdings, Inc. (NYSE:CDRE) shareholders if they were a little worried about the fact that Nicholas Sokolow, the Lead Independent Director recently netted about US$699k selling shares at an average price of US$32.67. However, that sale only accounted for 3.7% of their holding, so arguably it doesn't say much about their conviction.
Cadre Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the Executive Chairman & CEO, Warren Kanders, for US$50m worth of shares, at about US$35.00 per share. That means that an insider was selling shares at around the current price of US$32.80. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern.
Insiders in Cadre Holdings didn't buy any shares in the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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Insider Ownership Of Cadre Holdings
Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. Cadre Holdings insiders own 36% of the company, currently worth about US$502m 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 Do The Cadre Holdings Insider Transactions Indicate?
Insiders sold Cadre Holdings shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But since Cadre Holdings is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. In terms of investment risks, we've identified 3 warning signs with Cadre Holdings and understanding them should be part of your investment process.
Of course Cadre Holdings 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.
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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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