Some Corpay, Inc. (NYSE:CPAY) shareholders may be a little concerned to see that the Independent Director, Joseph Farrelly, recently sold a substantial US$1.0m worth of stock at a price of US$310 per share. That's a big disposal, and it decreased their holding size by 19%, which is notable but not too bad.

The Last 12 Months Of Insider Transactions At Corpay

In fact, the recent sale by Joseph Farrelly was the biggest sale of Corpay shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at below the current price (US$316). 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. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 19% of Joseph Farrelly's stake.

Insiders in Corpay didn't buy any shares in the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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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Does Corpay 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. Corpay insiders own 3.3% of the company, currently worth about US$732m based on the recent share price. 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 Corpay Insider Transactions Indicate?

An insider hasn't bought Corpay stock in the last three months, but there was some selling. And there weren't any purchases to give us comfort, over the last year. On the plus side, Corpay makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Corpay. You'd be interested to know, that we found 2 warning signs for Corpay and we suggest you have a look.

Of course Corpay 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.