Insider Selling Spree at Core Molding Technologies

Numerous financial media outlets are reporting on an unusually large insider sale of shares by the executive vice president of human resources at Core Molding Technologies. Renee Anderson’s Form 4 filing on Aug. 19 with the US Securities and Exchange Commission revealed the sale of 25,000 shares, at a total transaction value of $451,060, according to Benzinga.

Lots of selling, but no buying

Over the past year, Anderson has sold a total of 59,963 shares and has not purchased any shares, reports Yahoo Finance. “This recent sale is part of a broader trend within the company, where there have been 24 insider sells and no insider buys over the past year,” it adds.

Sales down in first half of year

During its Q2 earnings call earlier this month, Core Molding Technologies reported a 15.4% decline in sales for the first half of 2024, which Chief Financial Officer John Zimmer attributed to “economic headwinds, tough comparisons, and customer inventory rationalization.” He added that the company is “lowering sales guidance to the bottom of our full-year guidance, down approximately 15% compared to 2023 sales, due to continued softness in customer demand driven by macro-economic conditions.”

On the date of Anderson’s sale, shares of Core Molding Technologies were trading at $18.04, according to Yahoo Finance. The company’s share price on Aug. 20 was $17.92, according to Seeking Alpha.

What insider sales can tell you

Insider sales might interest investors as they evaluate the stock’s valuation and consider the insider's ongoing ownership stake in relation to the company's current market performance and future outlook, notes Yahoo Finance. Insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors, adds Benzinga.

Headquartered in Columbus, OH, and with multiple locations in the United States, Canada, and Mexico, Core Molding Technologies molds thermoplastic and thermoset structural products primarily for the building and construction, transportation, and power sports sectors. The company offers SMC compression molding, resin transfer molding, spray-up, hand-lay-up, structural foam, and structural web injection molding, among other processing services.