Market cap

As Cooper-Standard Holdings Inc.’s (NYSE:CPS) market cap drops to $76 million, insiders may question their decision to buy earlier this year

Insiders who bought $1.3 million worth of Cooper-Standard Holdings Inc. (NYSE:CPS) at an average purchase price of US$13.65 over the past year may be disappointed with the stock’s recent 15% decline. Insiders buy in the hope that their investments will increase in value over time. However, due to recent losses, their initial investment is now only worth US$408,000, which is not huge.

While insider trading isn’t the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider trading altogether.

See our latest analysis for Cooper-Standard Holdings

Cooper-Standard Holdings insider trading over the past year

In the past twelve months, the largest single insider purchase was when independent director Stephen Van Oss bought US$485,000 worth of stock at US$13.03 per share. It is therefore clear that an insider wanted to buy, even at a price higher than the current price of the stock (ie US$4.43). Their perspective may have changed since then, but it at least shows that they were feeling optimistic at the time. In our view, the price an insider pays for a stock is very important. Generally, we are more positive about a stock if insiders bought the stock above current prices, as this suggests they viewed the stock as good value, even at a higher price.

While Cooper-Standard Holdings insiders have bought shares over the past year, they haven’t sold. You can see insider trading (by companies and individuals) over the past year illustrated in the table below. If you want to know exactly who sold, how much and when, just click on the chart below!

NYSE: CPS Insider Trading Volume June 19, 2022

There are many other companies whose insiders buy shares. You probably do not want to miss this free list of growing companies insiders are buying.

Cooper-Standard Holdings insiders recently bought shares

There has been some insider buying at Cooper-Standard Holdings over the past quarter. Senior Vice President Patrick Clark paid US$16,000 for shares around this time. It’s good to see insider buying, as well as the lack of recent sellers. But the amount invested in the last three months is not enough for us to give too much weight to it, as a single factor.

Does Cooper-Standard Holdings boast of high insider ownership?

Many investors like to check how much a company is owned by insiders. We generally like to see fairly high levels of insider ownership. According to our data, insiders of Cooper-Standard Holdings own about 2.7% of the shares, worth about $2.0 million. We consider this to be fairly weak insider property.

So what does this data suggest about Cooper-Standard Holdings insiders?

Our data shows some insider buying, but no selling, over the past three months. That said, the purchases weren’t significant. However, our analysis of transactions over the past year is encouraging. We would like to see larger individual holdings. However, we see nothing to suggest that insiders at Cooper-Standard Holdings doubt the company. So, while it is useful to know what insiders are doing in terms of buying or selling, it is also useful to know the risks that a particular company faces. To do this, you need to find out about the 3 warning signs we spotted with Cooper-Standard Holdings (including 1 which is a little worrying).

Sure Cooper-Standard Holdings may not be the best stock to buy. So you might want to see this free set of high quality companies.

For the purposes of this article, insiders are persons who report their transactions to the relevant regulatory body. We currently record open market transactions and private dispositions, but not derivative transactions.

This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.