Insiders At Clear Channel Outdoor Holdings See Good Returns After Buying Stock Worth US$27.8m
Insiders who bought Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) in the last 12 months may probably not pay attention to the stock's recent 11% drop. After taking the recent loss into consideration, the US$27.8m worth of stock they bought is now worth US$40.5m, indicating that their investment yielded a positive return.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Check out our latest analysis for Clear Channel Outdoor Holdings
Clear Channel Outdoor Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when insider Arturo Moreno bought US$11m worth of shares at a price of US$1.22 per share. We do like to see buying, but this purchase was made at well below the current price of US$1.55. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
Arturo Moreno bought 26.10m shares over the last 12 months at an average price of US$1.07. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Clear Channel Outdoor 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
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 8.8% of Clear Channel Outdoor Holdings shares, worth about US$66m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Do The Clear Channel Outdoor Holdings Insider Transactions Indicate?
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. Overall we don't see anything to make us think Clear Channel Outdoor Holdings insiders are doubting the company, and they do own shares. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 2 warning signs (1 can't be ignored!) that you ought to be aware of before buying any shares in Clear Channel Outdoor 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 of direct interests only, but not derivative transactions or indirect interests.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.
