New Zealand markets closed
  • NZX 50

    10,862.34
    +109.18 (+1.02%)
     
  • NZD/USD

    0.6250
    +0.0039 (+0.63%)
     
  • ALL ORDS

    6,796.90
    +76.50 (+1.14%)
     
  • OIL

    107.97
    -0.46 (-0.42%)
     
  • GOLD

    1,806.60
    +5.10 (+0.28%)
     

Having purchased US$1.1m worth of Cannae Holdings, Inc. (NYSE:CNNE) stock, the recent 11% pullback is not what insiders may have expected

·3-min read

Insiders who acquired US$1.1m worth of Cannae Holdings, Inc.'s (NYSE:CNNE) stock at an average price of US$24.98 in the past 12 months may be dismayed by the recent 11% price decline. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth US$864k which is not ideal.

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.

See our latest analysis for Cannae Holdings

The Last 12 Months Of Insider Transactions At Cannae Holdings

The CEO & Director Richard Massey made the biggest insider purchase in the last 12 months. That single transaction was for US$485k worth of shares at a price of US$24.24 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$19.21). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

While Cannae Holdings insiders bought shares during the last year, they didn't sell. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders at Cannae Holdings Have Bought Stock Recently

Over the last three months, we've seen significant insider buying at Cannae Holdings. Overall, two insiders shelled out US$1.1m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.

Insider Ownership of Cannae Holdings

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Cannae Holdings insiders own 6.5% of the company, currently worth about US$106m based on the recent share price. 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 Cannae Holdings Insider Transactions Indicate?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cannae Holdings. One for the watchlist, at least! 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. You'd be interested to know, that we found 1 warning sign for Cannae Holdings and we suggest you have a look.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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, 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.

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting