Potential Coca-Cola Amatil Limited (ASX:CCL) shareholders may wish to note that the Independent Non-Executive Director, Penelope Winn, recently bought AU$170k worth of stock, paying AU$9.27 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Coca-Cola Amatil Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Group MD & Executive Director Alison Watkins bought AU$1.0m worth of shares at a price of AU$12.92 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$9.29). Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Coca-Cola Amatil insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$11.48. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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).
Does Coca-Cola Amatil Boast High Insider Ownership?
Many investors like to check how much of a company is owned by 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. Our data indicates that Coca-Cola Amatil insiders own about AU$9.4m worth of shares (which is 0.1% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Coca-Cola Amatil Tell Us?
The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Coca-Cola Amatil insiders are expecting a bright future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 4 warning signs for Coca-Cola Amatil that deserve your attention before buying any shares.
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.
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. 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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