Yahoo Finance Bullish Clime Investment Management Insiders Loaded Up On AU$2.67m Of Stock
Multiple insiders secured a larger position in Clime Investment Management Limited (ASX:CIW) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
View our latest analysis for Clime Investment Management
Clime Investment Management Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by insider Wen Ding for AU$2.7m worth of shares, at about AU$0.35 per share. That means that even when the share price was higher than AU$0.32 (the recent price), an insider wanted to purchase shares. 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.
Happily, we note that in the last year insiders paid AU$2.7m for 8.12m shares. But insiders sold 3.42m shares worth AU$1.1m. In the last twelve months there was more buying than selling by Clime Investment Management insiders. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Clime Investment Management is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Clime Investment Management Have Bought Stock Recently
Over the last three months, we've seen significantly more insider buying, than insider selling, at Clime Investment Management. In total, insider Wen Ding bought AU$2.7m worth of shares in that time. But insider Ronni Chalmers sold shares worth AU$1.1m. We think insiders may be optimistic about the future, since insiders have been net buyers of shares.
Does Clime Investment Management Boast High Insider Ownership?
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. Clime Investment Management insiders own about AU$8.0m worth of shares. That equates to 32% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Clime Investment Management Insider Transactions Indicate?
It is good to see the recent insider purchase. 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. Given that insiders also own a fair bit of Clime Investment Management we think they are probably pretty confident of a bright future. While it's good to be aware of 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. At Simply Wall St, we've found that Clime Investment Management has 5 warning signs (2 are potentially serious!) that deserve your attention before going any further with your analysis.
But note: Clime Investment Management 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com
