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Potential Capital & Counties Properties PLC (LON:CAPC) shareholders may wish to note that the Independent Non-Executive Director, Jonathan Lane, recently bought UK£106k worth of stock, paying UK£1.06 for each share. We reckon that's a good sign, especially since the purchase boosted their holding by 67%.
The Last 12 Months Of Insider Transactions At Capital & Counties Properties
Notably, that recent purchase by Independent Non-Executive Director Jonathan Lane was not the only time they bought Capital & Counties Properties shares this year. They previously made an even bigger purchase of UK£142k worth of shares at a price of UK£1.30 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£1.06). 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 is very important. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Capital & Counties Properties insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around UK£1.15. I'd consider this a positive as it suggests insiders see value at around the current price. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
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.
Does Capital & Counties Properties Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. From looking at our data, insiders own UK£2.4m worth of Capital & Counties Properties stock, about 0.3% of the company. However, it's possible that insiders might have an indirect interest through a more complex structure. We consider this fairly low insider ownership.
So What Does This Data Suggest About Capital & Counties Properties Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Capital & Counties Properties 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. Our analysis shows 2 warning signs for Capital & Counties Properties (1 is concerning!) and we strongly recommend you look at these before investing.
Of course Capital & Counties Properties 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.
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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