Yahoo Finance Corporate Travel Management Insiders Placed Bullish Bets Worth AU$1.45m
Over the last year, a good number of insiders have significantly increased their holdings in Corporate Travel Management Limited (ASX:CTD). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for Corporate Travel Management
Corporate Travel Management Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by MD & Executive Director Jamie Pherous for AU$1.4m worth of shares, at about AU$15.98 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$15.99. Of course they may have changed their mind. But this suggests they are optimistic. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Corporate Travel Management insiders decided to buy shares at close to current prices.
In the last twelve months insiders purchased 90.90k shares for AU$1.5m. On the other hand they divested 59.28k shares, for AU$1.3m. In the last twelve months there was more buying than selling by Corporate Travel Management insiders. 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!
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 Corporate Travel Management Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Corporate Travel Management. MD & Executive Director Jamie Pherous spent AU$1.4m on stock, and there wasn't any selling. That shows some optimism about the company's future.
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Corporate Travel Management insiders own 13% of the company, currently worth about AU$310m 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.
What Might The Insider Transactions At Corporate Travel Management Tell Us?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest Corporate Travel Management insiders are well aligned, and quite possibly think the share price is too low. Looks promising! Therefore, you should definitely take a look at this FREE report showing analyst forecasts for Corporate Travel Management.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
