CRH Insiders Placed Bullish Bets Worth US$748.7k
Over the last year, a good number of insiders have significantly increased their holdings in CRH plc (NYSE:CRH). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for CRH
The Last 12 Months Of Insider Transactions At CRH
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Richard Fearon for US$614k worth of shares, at about US$61.37 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of US$79.32. 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.
CRH insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
CRH 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.
Insiders At CRH Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at CRH. We can see that Independent Non-Executive Director Shaun Kelly paid US$135k for shares in the company. No-one sold. This could be interpreted as suggesting a positive outlook.
Does CRH Boast High 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 0.02% of CRH shares, worth about US$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The CRH Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CRH insiders are well aligned, and that they may think the share price is too low. 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.
Of course CRH 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 of direct interests only, but not derivative transactions or indirect interests.
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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.
