CBL & Associates Properties, Inc. (NYSE:CBL) insiders placed bullish bets worth US$3.7m in the last 12 months

In the last year, multiple insiders have substantially increased their holdings of CBL & Associates Properties, Inc. (NYSE:CBL) stock, indicating that insiders' optimism about the company's prospects has increased.

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.

View our latest analysis for CBL & Associates Properties

The Last 12 Months Of Insider Transactions At CBL & Associates Properties

Over the last year, we can see that the biggest insider purchase was by Independent Chairman of the Board Jonathan Heller for US$3.2m worth of shares, at about US$32.25 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being US$23.65). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

Happily, we note that in the last year insiders paid US$3.7m for 118.95k shares. But insiders sold 20.00 shares worth US$479. In the last twelve months there was more buying than selling by CBL & Associates Properties insiders. 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!

insider-trading-volume

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insiders At CBL & Associates Properties Have Bought Stock Recently

We saw some CBL & Associates Properties insider buying shares in the last three months. They bought US$27k worth in that time. On the other hand, Chief Legal Officer & Secretary Jeffery Curry sold US$479 worth of shares. While it's good to see the insider buying, the net amount bought isn't enough for us to gain much confidence from it.

Insider Ownership

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. CBL & Associates Properties insiders own about US$20m worth of shares. That equates to 2.7% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At CBL & Associates Properties Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. However, our analysis of transactions over the last year is heartening. Insiders own shares in CBL & Associates Properties and we see no evidence to suggest they are worried about 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. When we did our research, we found 3 warning signs for CBL & Associates Properties (2 shouldn't be ignored!) that we believe deserve your full attention.

But note: CBL & Associates Properties 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.

Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here