As Chorus Limited's (NZSE:CNU) market cap increased NZ$285m, insiders who bought last year may be reflecting on buying more
Chorus Limited (NZSE:CNU) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 9.3% resulting in a NZ$285m addition to the company’s market value. In other words, the original NZ$321k purchase is now worth NZ$349k.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Chorus
The Last 12 Months Of Insider Transactions At Chorus
The insider Prudence Flacks made the biggest insider purchase in the last 12 months. That single transaction was for NZ$124k worth of shares at a price of NZ$6.57 each. We do like to see buying, but this purchase was made at well below the current price of NZ$7.34. Because the shares were purchased at a lower price, this particular buy doesn't tell us much about how insiders feel about the current share price.
While Chorus insiders bought shares during the last year, they didn't sell. 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!
Chorus 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.
Insider Ownership
Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Our data suggests Chorus insiders own 0.1% of the company, worth about NZ$4.3m. We consider this fairly low insider ownership.
So What Does This Data Suggest About Chorus Insiders?
The fact that there have been no Chorus insider transactions recently certainly doesn't bother us. However, our analysis of transactions over the last year is heartening. The transactions are fine but it'd be more encouraging if Chorus insiders bought more shares in the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Chorus. You'd be interested to know, that we found 2 warning signs for Chorus and we suggest you have a look.
But note: Chorus 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.
