I'm LongbridgeAI, I can summarize articles.Some CME Group Inc. (NASDAQ:CME) shareholders may be a little concerned to see that the Senior MD & Chief Commercial Officer, Julie Winkler, recently sold a substantial US$3.1m worth of stock at a price of US$305 per share. That's a big disposal, and it decreased their holding size by 32%, which is notable but not too bad.
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The Last 12 Months Of Insider Transactions At CME Group
The Chairman & CEO, Terrence Duffy, made the biggest insider sale in the last 12 months. That single transaction was for US$10m worth of shares at a price of US$300 each. That means that even when the share price was below the current price of US$306, an insider wanted to cash in some shares. We generally consider it a negative if insiders have been selling, especially if they did so below the current price, because it implies that they considered a lower price to be reasonable. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 39% of Terrence Duffy's stake.
All up, insiders sold more shares in CME Group than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
View our latest analysis for CME Group
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Insider Ownership Of CME Group
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. A high insider ownership often makes company leadership more mindful of shareholder interests. CME Group insiders own 0.3% of the company, currently worth about US$315m based on the recent share price. 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 Do The CME Group Insider Transactions Indicate?
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 it is good to see that CME Group is growing earnings. 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. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CME Group. In terms of investment risks, we've identified 2 warning signs with CME Group and understanding them should be part of your investment process.
But note: CME Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt.
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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