We wouldn't blame Charter Communications, Inc. (NASDAQ:CHTR) shareholders if they were a little worried about the fact that Thomas Rutledge, a company insider, recently netted about US$13m selling shares at an average price of US$145. That sale reduced their total holding by 29% which is hardly insignificant, but far from the worst we've seen.

Charter Communications Insider Transactions Over The Last Year

Notably, that recent sale by Thomas Rutledge is the biggest insider sale of Charter Communications shares that we've seen in the last year. That means that an insider was selling shares at around the current price of US$144. While insider selling is a negative, to us, it is more negative if the shares are sold 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 the last twelve months insiders purchased 27.62k shares for US$4.9m. On the other hand they divested 89.03k shares, for US$13m. All up, insiders sold more shares in Charter Communications than they bought, over the last year. The average sell price was around US$146. It's not particularly great to see insiders were selling shares around current prices. Since insiders sell for many reasons, we wouldn't put too much weight on it. 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!

I will like Charter Communications better if I see some big insider buys.

Does Charter Communications Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Charter Communications insiders own about US$107m worth of shares (which is 0.5% 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.

So What Do The Charter Communications Insider Transactions Indicate?

Unfortunately, there has been more insider selling of Charter Communications stock, than buying, in the last three months. Despite some insider buying, the longer term picture doesn't make us feel much more positive. But since Charter Communications is profitable and growing, we're not too worried by this. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company.

Of course Charter Communications may not be the best stock to buy. So you may wish 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 regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

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.