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When a single insider purchases stock, it is typically not a major deal. However, when multiple insiders purchase stock, like in Caribbean Utilities Company, Ltd.'s (TSE:CUP.U) instance, it's good news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
Caribbean Utilities Company Insider Transactions Over The Last Year
The insider David Ritch made the biggest insider purchase in the last 12 months. That single transaction was for US$63k worth of shares at a price of US$14.99 each. So it's clear an insider wanted to buy, at around the current price, which is US$15.00. Of course they may have changed their mind. But this suggests they are optimistic. 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 Caribbean Utilities Company share holders is that insiders were buying at near the current price.
In the last twelve months Caribbean Utilities Company insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Caribbean Utilities Company 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.
Insiders At Caribbean Utilities Company Have Bought Stock Recently
We saw some Caribbean Utilities Company insider buying shares in the last three months. Independent Director Jennifer Dilbert shelled out US$15k for shares in that time. It's great to see that insiders are only buying, not selling. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.
Insider Ownership Of Caribbean Utilities Company
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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own US$3.4m worth of Caribbean Utilities Company stock, about 0.6% of the company. We prefer to see high levels of insider ownership.
So What Does This Data Suggest About Caribbean Utilities Company Insiders?
We note a that there has been a bit of insider buying recently (but no selling). The net investment is not enough to encourage us much. But insiders have shown more of an appetite for the stock, over the last year. While we have no worries about the insider transactions, we'd be more comfortable if they owned more Caribbean Utilities Company stock. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Caribbean Utilities Company. Be aware that Caribbean Utilities Company is showing 2 warning signs in our investment analysis, and 1 of those makes us a bit uncomfortable...
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, but not derivative transactions.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
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