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Insider Buying: The Candy Club Holdings Limited (ASX:CLB) Non-Executive Chairman Just Bought 1.5% More Shares

Simply Wall St

Whilst it may not be a huge deal, we thought it was good to see that the Candy Club Holdings Limited (ASX:CLB) Non-Executive Chairman, James Baillieu, recently bought AU$81k worth of stock, for AU$0.092 per share. However, it only increased shares held by 1.5%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Candy Club Holdings

Candy Club Holdings Insider Transactions Over The Last Year

In fact, the recent purchase by Non-Executive Chairman James Baillieu was not their only acquisition of Candy Club Holdings shares this year. They previously made an even bigger purchase of AU$3.3m worth of shares at a price of AU$0.08 per share. That means that an insider was happy to buy shares at above the current price of AU$0.072. 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. We always take careful note of the price insiders pay when purchasing 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 AU$3.6m for 52.46m shares. But insiders sold 725208 shares worth AU$59k. In total, Candy Club Holdings insiders bought more than they sold over the last year. Their average price was about AU$0.068. It's great to see insiders putting their own cash into the company's stock, albeit at below the recent share price. You can see a visual depiction of insider transactions (by individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

ASX:CLB Recent Insider Trading May 9th 2020

Candy Club Holdings 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Candy Club Holdings insiders own 43% of the company, worth about AU$7.3m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Candy Club Holdings Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Candy Club Holdings. That's what I like to see! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Candy Club Holdings. To help with this, we've discovered 6 warning signs (2 are concerning!) that you ought to be aware of before buying any shares in Candy Club Holdings.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.