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Director Stuart Gibbons Just Bought 1.4% More Shares In The Colonial Motor Company Limited (NZSE:CMO)

·3 min read

Potential The Colonial Motor Company Limited (NZSE:CMO) shareholders may wish to note that the Director, Stuart Gibbons, recently bought NZ$304k worth of stock, paying NZ$9.80 for each share. Although the purchase only increased their holding by 1.4%, it is still a solid purchase in our view.

See our latest analysis for Colonial Motor

The Last 12 Months Of Insider Transactions At Colonial Motor

In fact, the recent purchase by Stuart Gibbons was the biggest purchase of Colonial Motor shares made by an insider individual in the last twelve months, according to our records. That implies that an insider found the current price of NZ$10.00 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Colonial Motor insiders decided to buy shares at close to current prices.

In the last twelve months Colonial Motor insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart 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
insider-trading-volume

Colonial Motor 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

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. Colonial Motor insiders own 77% of the company, currently worth about NZ$253m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Colonial Motor Tell Us?

The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Colonial Motor. Nice! So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For example - Colonial Motor has 1 warning sign we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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.

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.

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