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It is not uncommon to see companies perform well in the years after insiders buy shares. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So we'll take a look at whether insiders have been buying or selling shares in Clear Channel Outdoor Holdings, Inc. (NYSE:CCO).
What Is Insider Buying?
It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, most countries require that the company discloses such transactions to the market.
We would never suggest that investors should base their decisions solely on what the directors of a company have been doing. But equally, we would consider it foolish to ignore insider transactions altogether. As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.
The Last 12 Months Of Insider Transactions At Clear Channel Outdoor Holdings
Over the last year, we can see that the biggest insider purchase was by Chairman & Lead Independent Director W. Moreland for US$914k worth of shares, at about US$2.28 per share. That implies that an insider found the current price of US$2.60 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. The good news for Clear Channel Outdoor Holdings share holders is that insiders were buying at near the current price.
In the last twelve months Clear Channel Outdoor Holdings insiders were buying shares, but not selling. You can see the insider transactions (by individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
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).
Insider Ownership of Clear Channel Outdoor Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Our data indicates that Clear Channel Outdoor Holdings insiders own about US$6.3m worth of shares (which is 0.5% of the company). We do generally prefer see higher levels of insider ownership.
What Might The Insider Transactions At Clear Channel Outdoor Holdings Tell Us?
It doesn't really mean much that no insider has traded Clear Channel Outdoor Holdings shares in the last quarter. On a brighter note, the transactions over the last year are encouraging. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Clear Channel Outdoor Holdings stock. Therefore, you should should definitely take a look at this FREE report showing analyst forecasts for Clear Channel Outdoor Holdings.
Of course Clear Channel Outdoor Holdings 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, but not derivative transactions.
If you spot an error that warrants correction, please contact the editor at email@example.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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