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Potential CloudCoCo Group plc (LON:CLCO) shareholders may wish to note that the Independent Non-Executive Chairman, Simon Duckworth, recently bought UK£120k worth of stock, paying UK£0.01 for each share. That certainly has us anticipating the best, especially since they thusly increased their own holding by 87%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At CloudCoCo Group
In fact, the recent purchase by Simon Duckworth was the biggest purchase of CloudCoCo Group shares made by an insider individual in the last twelve months, according to our records. We do like to see buying, but this purchase was made at well below the current price of UK£0.013. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
Simon Duckworth bought a total of 13.00m shares over the year at an average price of UK£0.01. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does CloudCoCo Group 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. CloudCoCo Group insiders own 48% of the company, currently worth about UK£3.2m 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.
So What Does This Data Suggest About CloudCoCo Group Insiders?
The recent insider purchase is 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. When combined with notable insider ownership, these factors suggest CloudCoCo Group insiders are well aligned, and quite possibly think the share price is too low. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing CloudCoCo Group. When we did our research, we found 3 warning signs for CloudCoCo Group (2 are potentially serious!) that we believe deserve your full attention.
But note: CloudCoCo Group 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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