Insiders who sold US$15m worth of The Coca-Cola Company (NYSE:KO were amply compensated

The Coca-Cola Company's (NYSE:KO) stock rose 3.4% last week, but insiders who sold US$15m worth of stock over the last year are probably in a more advantageous position. Selling at an average price of US$61.62, which is higher than the current price, may have been the wisest decision for these insiders as their investment would have been worth less now than when they sold.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Coca-Cola

The Last 12 Months Of Insider Transactions At Coca-Cola

The President & CFO, John Murphy, made the biggest insider sale in the last 12 months. That single transaction was for US$3.3m worth of shares at a price of US$62.29 each. So we know that an insider sold shares at around the present share price of US$57.57. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign.

In total, Coca-Cola insiders sold more 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!

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

Coca-Cola Insiders Are Selling The Stock

There was substantially more insider selling, than buying, of Coca-Cola shares over the last three months. We note insiders cashed in US$2.9m worth of shares. On the other hand we note insider Carolyn Everson bought US$61k worth of shares , as previously mentioned . Generally this level of net selling might be considered a bit bearish.

Does Coca-Cola Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Coca-Cola insiders own about US$1.6b worth of shares (which is 0.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Coca-Cola Tell Us?

The stark truth for Coca-Cola is that there has been more insider selling than insider buying in the last three months. And our longer term analysis of insider transactions didn't bring confidence, either. On the plus side, Coca-Cola makes money, and is growing profits. It is good to see high insider ownership, but the insider selling leaves us cautious. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Coca-Cola. Case in point: We've spotted 2 warning signs for Coca-Cola you should be aware of.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here