Trading Alert: Todd Cooper, President of Advanced Technology Solutions at Celestica, has sold shares

Some Celestica Inc. (TSE:CLS) shareholders may be a little concerned because Todd Cooper, the President of Advanced Technology Solutions, recently sold CA$3.3 million worth of shares at a price of CA$55.63 per share. This sale reduced their total holdings by 25%, which is not insignificant, but far from the worst we’ve seen.

Check out our latest analysis for Celestica

The last 12 months of insider transactions at Celestica

In fact, according to our records, Todd Cooper’s recent sale was the largest sale of Celestica shares by an insider in the last twelve months, so it’s clear that an insider wanted to take some money off the table, even below the current price of CA$71.88. We generally view it as a negative when insiders have sold, particularly when they did so below the current price, because it implies they felt a lower price was appropriate. Please note, however, that sellers may have various reasons for selling, so we don’t know for sure what they think of the share price. We note that the largest single sale was only 25% of Todd Cooper’s shares.

Celestica insiders have not purchased any shares in the last year. Below is a visual representation of insider transactions (by companies and individuals) over the last 12 months. If you click on the chart, you can see all the individual transactions, including share price, individual, and date!

If you are like me, you will not don’t want to miss this free List of small-cap stocks that are not only bought by insiders but are also attractively valued.

Insider ownership

Looking at a company’s total insider shareholdings can help you assess whether they are well aligned with common shareholders. I think it’s a good sign when insiders own a significant number of shares in the company. It appears that Celestica insiders own 0.9% of the company, worth about CA$74 million. While this is a strong but not outstanding level of insider ownership, it is enough to indicate some alignment between management and smaller shareholders.

What could Celestica’s insider transactions tell us?

Insiders have recently sold Celestica shares, but have not bought any. And there have been no purchases in the last year to reassure us. But it is good to see Celestica’s earnings growing. Insiders own shares, but we are still quite cautious given the selling history. We are in no rush to buy! So these insider transactions can help us build a thesis on the stock, but it is also worth knowing the risks this company faces. To support this, we have discovered: 1 warning sign which you should take a look at to get a better picture of Celestica.

Naturally Celestica may not be the best stock to buy. You may want 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 regulator. Currently, we only consider open market transactions and private disposals of direct holdings, but not derivative transactions or indirect holdings.

Do you have feedback on this article? Are you concerned about the content? Get in touch directly from us. Alternatively, send an email to editorial-team (at) simplywallst.com.

This Simply Wall St article is of a general nature. We comment solely on historical data and analyst forecasts, using an unbiased methodology. Our articles do not constitute financial advice. It is not a recommendation to buy or sell any stock and does not take into account your objectives or financial situation. Our goal is to provide you with long-term analysis based on fundamental data. Note that our analysis may not take into account the latest price-sensitive company announcements or qualitative materials. Simply Wall St does not hold any of the stocks mentioned.