Non Executive Independent Director of Calix Catriona Deans Buys 100% More Shares
Even if it's not a huge purchase, we think it was good to see that Catriona Deans, the Non Executive Independent Director of Calix Limited (ASX:CXL) recently shelled out AU$87k to buy stock, at AU$1.73 per share. While that isn't the hugest buy, it actually boosted their shareholding by 100%, which is good to see.
View our latest analysis for Calix
Calix Insider Transactions Over The Last Year
The Co-Founder Mark Sceats made the biggest insider purchase in the last 12 months. That single transaction was for AU$439k worth of shares at a price of AU$4.39 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$1.54). Their view may have changed since then, but at least it shows they felt optimistic at the time. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Calix insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$3.50 on average. These transactions suggest that insiders have considered the current price attractive. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Calix is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership Of Calix
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. It appears that Calix insiders own 20% of the company, worth about AU$56m. 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 Do The Calix Insider Transactions Indicate?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. When combined with notable insider ownership, these factors suggest Calix insiders are well aligned, and that they may think the share price is too low. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. For instance, we've identified 2 warning signs for Calix (1 is a bit unpleasant) you should be aware of.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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 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.
