Whilst it may not be a huge deal, we thought it was good to see that the Chorus Limited (NZSE:CNU) Independent Director, Jack Matthews, recently bought NZ$51k worth of stock, for NZ$6.78 per share. Even though that isn't a massive buy, it did increase their holding by 66%, which is arguably a good sign.
Chorus Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Director Prudence Flacks bought NZ$124k worth of shares at a price of NZ$6.57 per share. That means that an insider was happy to buy shares at around the current price of NZ$7.09. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Chorus insiders decided to buy shares at close to current prices.
Happily, we note that in the last year insiders paid NZ$502k for 68.29k shares. But insiders sold 10.00k shares worth NZ$85k. Overall, Chorus insiders were net buyers during the last year. They paid about NZ$7.35 on average. These transactions suggest that insiders have considered the current price attractive. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Chorus 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.
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Our data suggests Chorus insiders own 0.1% of the company, worth about NZ$4.7m. We consider this fairly low insider ownership.
What Might The Insider Transactions At Chorus Tell Us?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Chorus insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chorus. Case in point: We've spotted 2 warning signs for Chorus you should be aware of.
But note: Chorus 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.
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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