I'm LongbridgeAI, I can summarize articles.CME Group Chairman & CEO Terrence Duffy recently sold US$4.1m worth of shares at $274 per share, reducing his holding by 27%. This follows an earlier sale of US$10m at $300 per share. Overall, insider selling has outweighed buying over the last year. While CME insiders own 0.3% of the company, indicating alignment with shareholders, the net selling activity is viewed negatively, though analysts remain less concerned due to the company's profitability and growth.
Some CME Group Inc. (NASDAQ:CME) shareholders may be a little concerned to see that the Chairman & CEO, Terrence Duffy, recently sold a substantial US$4.1m worth of stock at a price of US$274 per share. That's a big disposal, and it decreased their holding size by 27%, which is notable but not too bad.
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The Last 12 Months Of Insider Transactions At CME Group
Notably, that recent sale by Chairman & CEO Terrence Duffy was not the only time they sold CME Group shares this year. Earlier in the year, they fetched US$300 per share in a -US$10m sale. So we know that an insider sold shares at around the present share price of US$276. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).
All up, insiders sold more shares in CME 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. By clicking on the graph below, you can see the precise details of each insider transaction!
See our latest analysis for CME Group
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Insider Ownership Of CME Group
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It's great to see that CME Group insiders own 0.3% of the company, worth about US$277m. 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 Does This Data Suggest About CME Group Insiders?
The insider sales have outweighed the insider buying, at CME Group, in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. But since CME Group is profitable and growing, we're not too worried by this. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. While it's good to be aware of what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. While conducting our analysis, we found that CME Group has 2 warning signs and it would be unwise to ignore them.
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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.