Insider Buying: The Countplus Limited (ASX:CUP) CEO, MD & Director Just Bought AU$68k Worth Of Shares
Even if it's not a huge purchase, we think it was good to see that Matthew Rowe, the CEO, MD & Director of Countplus Limited (ASX:CUP) recently shelled out AU$68k to buy stock, at AU$1.00 per share. That might not be a big purchase but it only increased their holding by 4.9%, and could be interpreted as a good sign.
View our latest analysis for Countplus
Countplus Insider Transactions Over The Last Year
In fact, the recent purchase by CEO, MD & Director Matthew Rowe was not their only acquisition of Countplus shares this year. Earlier in the year, they paid AU$0.88 per share in a AU$229k purchase. So it's clear an insider wanted to buy, at around the current price, which is AU$0.99. Of course they may have changed their mind. But this suggests they are optimistic. 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 Countplus insiders decided to buy shares at close to current prices.
Countplus insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Countplus 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
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. We usually like to see fairly high levels of insider ownership. Insiders own 9.1% of Countplus shares, worth about AU$9.9m, according to our data. We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Countplus Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on Countplus stock. 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. Every company has risks, and we've spotted 4 warning signs for Countplus (of which 2 are significant!) you should know about.
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.
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