Yahoo Finance Bullish insiders at CBL & Associates Properties, Inc. (NYSE:CBL) loaded up on US$4.0m of stock earlier this year
Multiple insiders secured a larger position in CBL & Associates Properties, Inc. (NYSE:CBL) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
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 CBL & Associates Properties
The Last 12 Months Of Insider Transactions At CBL & Associates Properties
Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Jonathan Heller for US$3.2m worth of shares, at about US$32.25 per share. That means that an insider was happy to buy shares at above the current price of US$25.25. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 126.00k shares worth US$4.0m. On the other hand they divested 199.00 shares, for US$6.0k. Overall, CBL & Associates Properties insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Insiders at CBL & Associates Properties Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at CBL & Associates Properties. Overall, two insiders shelled out US$3.7m for shares in the company -- and none sold. This makes one think the business has some good points.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. CBL & Associates Properties insiders own about US$22m worth of shares. That equates to 2.7% 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.
What Might The Insider Transactions At CBL & Associates Properties Tell Us?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Insiders likely see value in CBL & Associates Properties shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Be aware that CBL & Associates Properties is showing 2 warning signs in our investment analysis, and 1 of those shouldn't be ignored...
Of course CBL & Associates Properties may not be the best stock to buy. So you may wish to see this free collection of high quality 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.
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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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