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The MD, CEO & Director of Cromwell Property Group (ASX:CMW), Paul Weightman, Just Bought 0.5% More Shares

Even if it's not a huge purchase, we think it was good to see that Paul Weightman, the MD, CEO & Director of Cromwell Property Group (ASX:CMW) recently shelled out AU$131k to buy stock, at AU$1.05 per share. However, we do note that it only increased their holding by 0.5%, and it wasn't a huge purchase by absolute value, either.

View our latest analysis for Cromwell Property Group

The Last 12 Months Of Insider Transactions At Cromwell Property Group

insider Jialei Tang made the biggest insider purchase in the last 12 months. That single transaction was for AU$133m worth of shares at a price of AU$1.33 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.06). It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

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Over the last year, we can see that insiders have bought 132.77m shares worth AU$171m. On the other hand they divested 355000 shares, for AU$430k. In the last twelve months there was more buying than selling by Cromwell Property Group insiders. The chart below shows insider transactions (by individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

ASX:CMW Recent Insider Trading, March 14th 2020
ASX:CMW Recent Insider Trading, March 14th 2020

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Cromwell Property Group insiders own about AU$183m worth of shares (which is 6.6% 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 Cromwell Property Group Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Cromwell Property Group. One for the watchlist, at least! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Every company has risks, and we've spotted 4 warning signs for Cromwell Property Group (of which 1 is potentially serious!) you should know about.

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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.