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The fact that multiple Constellation Brands, Inc. (NYSE:STZ) insiders offloaded a considerable amount of shares over the past year could have raised some eyebrows amongst investors. When evaluating insider transactions, knowing whether insiders are buying is usually more beneficial than knowing whether they are selling, as the latter can be open to many interpretations. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
The Last 12 Months Of Insider Transactions At Constellation Brands
Over the last year, we can see that the biggest insider sale was by the Director, Robert Sands, for US$29m worth of shares, at about US$243 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. The good news is that this large sale was at well above current price of US$178. So it may not tell us anything about how insiders feel about the current share price.
All up, insiders sold more shares in Constellation Brands 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 want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Constellation Brands
For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.
Insiders At Constellation Brands Have Sold Stock Recently
The last quarter saw substantial insider selling of Constellation Brands shares. In total, insider Samuel Glaetzer dumped US$594k worth of shares in that time, and we didn't record any purchases whatsoever. Overall this makes us a bit cautious, but it's not the be all and end all.
Insider Ownership Of Constellation Brands
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Constellation Brands insiders own 2.3% of the company, currently worth about US$750m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.