Shares of South Korean e-commerce company Coupang (CPNG) are trading higher today and are approaching their 52-week high. Indeed, the stock has been on a solid uptrend since bottoming out in February. However, it seems like insiders have been taking advantage of this rally by selling their shares. In fact, insiders have sold $24.9 million worth of CPNG shares in the past three months.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Most of the activity has occurred in the past 18 days and were Informative Sells, which means they are from insiders with intimate knowledge of what is happening behind the scenes. The two most notable sales during this time frame came from CFO Gaurav Anand and Director Benjamin Sun, who both sold 200,000 shares that were valued at over $4.5 million.
As a result, confidence from within appears to be very low, as the Insider Confidence Signal for CPNG stock is very negative and below the sector average, as shown in the picture below:
Is CPNG a Good Stock to Buy?
While insider sales could be a sign of issues within the company, that does not seem to be the case with Coupang, as both Anand and Sun still have significant stakes in the company that are valued at $48 million and $197 million, respectively. Therefore, their transactions were likely due to personal reasons. In addition, analysts seem to think that CPNG stock is a good buy.
In fact, they have a Moderate Buy consensus rating based on five Buys, one Hold, and one Sell assigned in the past three months. After a 23% rally in its share price over the past year, the average CPNG price target of $28.40 per share implies 23.26% upside potential.
