Have Insiders Been Buying Cromwell Property Group (ASX:CMW) Shares?
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. On the other hand, we’d be remiss not to mention that insider sales have been known to precede tough periods for a business. So we’ll take a look at whether insiders have been buying or selling shares in Cromwell Property Group (ASX:CMW).
What Is Insider Buying?
Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock on the market. However, most countries require that the company discloses such transactions to the market.
Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. 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.’
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Cromwell Property Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman of the Board Geoffrey Levy bought AU$502k worth of shares at a price of AU$0.98 per share. That means that an insider was happy to buy shares at around the current price. That means they have been optimistic about the company in the past, though they may have changed their mind. Nonetheless, we consider it positive if insiders want to buy at around the current share price.
Over the last year, we can see that insiders have bought 1.82m shares worth AU$1.8m. But they sold 529.00k for AU$509k. In total, Cromwell Property Group insiders bought more than they sold over the last year. Their average price was about AU$0.98. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price of AU$1.04. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insiders at Cromwell Property Group Have Bought Stock Recently
There has been significantly more insider buying, than selling, at Cromwell Property Group, over the last three months. In total, 5 insiders bought AU$1.5m worth of shares in that time. But Paul Weightman sold shares worth AU$200k. The buying outweighs the selling, which suggests that insiders may believe the company will do well in the future.
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. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Cromwell Property Group insiders own 1.5% of the company, worth about AU$35m. We’ve certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Cromwell Property Group Insiders?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Cromwell Property Group we think they are probably pretty confident of a bright future. Of course, the future is what matters most. So if you are interested in Cromwell Property Group, you should check out this free report on analyst forecasts for the company.
Of course Cromwell Property Group may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
