Yahoo Finance Trade Alert: The Independent Non-Executive Chairman Of Challenger Limited (ASX:CGF), Duncan West, Has Just Spent AU$101k Buying 62% More Shares
Whilst it may not be a huge deal, we thought it was good to see that the Challenger Limited (ASX:CGF) Independent Non-Executive Chairman, Duncan West, recently bought AU$101k worth of stock, for AU$6.28 per share. Even though that isn't a massive buy, it did increase their holding by 62%, which is arguably a good sign.
View our latest analysis for Challenger
Challenger Insider Transactions Over The Last Year
In fact, the recent purchase by Duncan West was the biggest purchase of Challenger shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at above the current price of AU$6.03. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. The only individual insider to buy over the last year was Duncan West.
You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Challenger is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Our data suggests Challenger insiders own 0.1% of the company, worth about AU$4.4m. I generally like to see higher levels of ownership.
What Might The Insider Transactions At Challenger Tell Us?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Challenger stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Challenger. While conducting our analysis, we found that Challenger has 2 warning signs and it would be unwise to ignore them.
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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