Bullish insiders bet UK£1.0m on City of London Investment Group PLC (LON:CLIG)
Multiple insiders secured a larger position in City of London Investment Group PLC (LON:CLIG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for City of London Investment Group
City of London Investment Group Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Founder Barry Olliff for UK£475k worth of shares, at about UK£4.75 per share. That means that an insider was happy to buy shares at around the current price of UK£5.10. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. 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. The good news for City of London Investment Group share holders is that insiders were buying at near the current price. We note that Barry Olliff was both the biggest buyer and the biggest seller.
Happily, we note that in the last year insiders paid UK£1.0m for 210.35k shares. On the other hand they divested 101.12k shares, for UK£550k. In total, City of London Investment Group insiders bought more than they sold over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!
City of London Investment Group is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
City of London Investment Group Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at City of London Investment Group. Not only was there no selling that we can see, but they collectively bought UK£951k worth of shares. This makes one think the business has some good points.
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. We usually like to see fairly high levels of insider ownership. It's great to see that City of London Investment Group insiders own 43% of the company, worth about UK£108m. 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 City of London Investment Group Insiders?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest City of London Investment Group insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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.
But note: City of London Investment 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.
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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.
