Yahoo Finance How Much Are Clipper Logistics plc (LON:CLG) Insiders Spending On Buying Shares?
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We often see insiders buying up shares in companies that perform well over the long term. On the other hand, we'd be remiss not to mention that insider sales have been known to precede tough periods for a business. So shareholders might well want to know whether insiders have been buying or selling shares in Clipper Logistics plc (LON:CLG).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, rules govern insider transactions, and certain disclosures are required.
We don't think shareholders should simply follow insider transactions. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'
Check out our latest analysis for Clipper Logistics
The Last 12 Months Of Insider Transactions At Clipper Logistics
Over the last year, we can see that the biggest insider purchase was by CFO, Member of Executive Board & Executive Director David Hodkin for UK£764k worth of shares, at about UK£3.18 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£2.82). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
In the last twelve months insiders purchased 324k shares for UK£1.0m. But they sold 180k for UK£514k. Overall, Clipper Logistics insiders were net buyers last year. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Clipper Logistics is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Clipper Logistics Have Bought Stock Recently
There was some insider buying at Clipper Logistics over the last quarter. Independent Non-Executive Director Stuart Watson shelled out UK£10k for shares in that time. It's good to see the insider buying, as well as the lack of recent sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Does Clipper Logistics Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Clipper Logistics insiders own about UK£95m worth of shares (which is 33% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Do The Clipper Logistics Insider Transactions Indicate?
Insider purchases may have been minimal, in the last three months, but there was no selling at all. The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. Insiders own shares in Clipper Logistics and we see no evidence to suggest they are worried about the future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course Clipper Logistics 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.
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If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
