Some Cogent Communications Holdings, Inc. (NASDAQ:CCOI) shareholders may be a little concerned to see that the Independent Director, David Bath, recently sold a substantial US$521k worth of stock at a price of US$83.69 per share. That's a big disposal, and it decreased their holding size by 38%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Cogent Communications Holdings

The Founder, David Schaeffer, made the biggest insider sale in the last 12 months. That single transaction was for US$5.8m worth of shares at a price of US$68.12 each. So it's clear an insider wanted to take some cash off the table, even below the current price of US$83.16. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. It is worth noting that this sale was only 1.8% of David Schaeffer's holding.

In total, Cogent Communications Holdings insiders sold more than they bought over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

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Does Cogent Communications Holdings 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Cogent Communications Holdings insiders own 10% of the company, currently worth about US$403m 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 Cogent Communications Holdings Insiders?

Insiders sold stock recently, but they haven't been buying. And our longer term analysis of insider transactions didn't bring confidence, either. It is good to see high insider ownership, but the insider selling leaves us cautious. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. At Simply Wall St, we've found that Cogent Communications Holdings has 6 warning signs (4 shouldn't be ignored!) that deserve your attention before going any further with your analysis.

Of course Cogent Communications 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.