Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of Civitas Social Housing PLC (LON:CSH), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.
The Last 12 Months Of Insider Transactions At Civitas Social Housing
The Independent Non-Executive Chairman Michael Wrobel made the biggest insider purchase in the last 12 months. That single transaction was for UK£60k worth of shares at a price of UK£0.75 each. That means that an insider was happy to buy shares at above the current price of UK£0.61. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Civitas Social Housing insiders may have bought shares in the last year, but they didn't sell any. 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!
Civitas Social Housing is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders At Civitas Social Housing Have Bought Stock Recently
It's good to see that Civitas Social Housing insiders have made notable investments in the company's shares. We can see that Independent Non-Executive Chairman Michael Wrobel paid UK£60k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Civitas Social Housing
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Our data isn't picking up on much insider ownership at Civitas Social Housing, though insiders do hold about UK£167k worth of shares. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We might be missing something but that seems like very low insider ownership.
So What Does This Data Suggest About Civitas Social Housing Insiders?
The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Civitas Social Housing insiders are reasonably well aligned, and optimistic for the future. While we like knowing 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. Case in point: We've spotted 4 warning signs for Civitas Social Housing you should be aware of, and 2 of them shouldn't be ignored.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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