Charter Hall Group (ASX:CHC) is up 10.0%, while insiders who purchased AU$924k are up 74%
Last week, Charter Hall Group (ASX:CHC) insiders, who had purchased shares in the previous 12 months were rewarded handsomely. The shares increased by 10.0% last week, resulting in a AU$918m increase in the company's market worth. In other words, the original AU$924k purchase is now worth AU$1.6m.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Charter Hall Group
The Last 12 Months Of Insider Transactions At Charter Hall Group
Over the last year, we can see that the biggest insider purchase was by MD, Group CEO & Director David Harrison for AU$863k worth of shares, at about AU$12.33 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$21.71. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Charter Hall Group insiders may have bought shares in the last year, but they didn't sell any. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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 Charter Hall Group Have Bought Stock Recently
Over the last three months, we've seen a bit of insider buying at Charter Hall Group. Independent Non-Executive Chairman David Clarke shelled out AU$35k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.
Insider Ownership
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Charter Hall Group insiders own 0.4% of the company, worth about AU$44m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Charter Hall Group 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. On a brighter note, the transactions over the last year are encouraging. Overall we don't see anything to make us think Charter Hall Group insiders are doubting the company, and they do own shares. 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. You'd be interested to know, that we found 1 warning sign for Charter Hall Group and we suggest you have a look.
Of course Charter Hall Group 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. 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.
