We wouldn't blame CBRE Group, Inc. (NYSE:CBRE) shareholders if they were a little worried about the fact that Christopher Jenny, the Independent Director recently netted about US$1.1m selling shares at an average price of US$136. That sale reduced their total holding by 17% which is hardly insignificant, but far from the worst we've seen.
The Last 12 Months Of Insider Transactions At CBRE Group
In the last twelve months, the biggest single sale by an insider was when the insider, John Durburg, sold US$2.3m worth of shares at a price of US$93.40 per share. That means that even when the share price was below the current price of US$130, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 9.7% of John Durburg's holding.
All up, insiders sold more shares in CBRE Group than they bought, over 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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Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It's great to see that CBRE Group insiders own 0.7% of the company, worth about US$282m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About CBRE Group Insiders?
The insider sales have outweighed the insider buying, at CBRE Group, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since CBRE Group is profitable and growing, we're not too worried by this. 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 CBRE Group. You'd be interested to know, that we found 2 warning signs for CBRE Group and we suggest you have a look.
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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.
