Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Close Brothers Group plc (LON:CBG), that sends out a positive message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Close Brothers Group Insider Transactions Over The Last Year
Notably, that recent purchase by Michael Morgan is the biggest insider purchase of Close Brothers Group shares that we've seen in the last year. That implies that an insider found the current price of UK£10.97 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Close Brothers Group share holders is that insiders were buying at near the current price. We note that Michael Morgan was also the biggest seller.
Over the last year, we can see that insiders have bought 9.84k shares worth UK£109k. But insiders sold 10.33k shares worth UK£108k. In the last twelve months there was more buying than selling by Close Brothers Group insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Close Brothers Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Close Brothers Group Insiders Are Selling The Stock
We've seen more insider selling than insider buying at Close Brothers Group recently. In that time, insiders dumped UK£108k worth of shares. On the flip side, CFO, Group Finance Director & Executive Director Michael Morgan spent UK£60k on purchasing shares. Because the selling vastly outweighs the buying, we'd say this is a somewhat bearish sign.
Does Close Brothers Group Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data suggests Close Brothers Group insiders own 0.2% of the company, worth about UK£3.5m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Close Brothers Group Tell Us?
Our data shows a little more insider selling than buying in the last three months. But the difference is small, and thus, not concerning. However, our analysis of transactions over the last year is heartening. We'd like to see bigger individual holdings. However, we don't see anything to make us think Close Brothers Group insiders are doubting the company. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Every company has risks, and we've spotted 2 warning signs for Close Brothers Group you should know about.
But note: Close Brothers 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, but not derivative transactions.
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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.
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