Quite a few insiders invested in Chorus Limited (NZSE:CNU) last year which is positive news for shareholders
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Chorus Limited's (NZSE:CNU) case, it's fantastic news for shareholders.
While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Chorus
Chorus Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider sale was by the General Manager of Network & Field Management, Andrew Carroll, for NZ$116k worth of shares, at about NZ$7.71 per share. So it's clear an insider wanted to take some cash off the table, even below the current price of NZ$7.99. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. We note that the biggest single sale was only 14% of Andrew Carroll's holding. Andrew Carroll was the only individual insider to sell over the last year.
Over the last year, we can see that insiders have bought 19.24k shares worth NZ$132k. But they sold 15.00k shares for NZ$116k. In total, Chorus insiders bought more than they sold over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Chorus 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 Chorus
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Based on our data, Chorus insiders have about 0.1% of the stock, worth approximately NZ$4.8m. I generally like to see higher levels of ownership.
So What Does This Data Suggest About Chorus Insiders?
The fact that there have been no Chorus insider transactions recently certainly doesn't bother us. On a brighter note, the transactions over the last year are encouraging. We'd like to see bigger individual holdings. However, we don't see anything to make us think Chorus insiders are doubting the company. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. In terms of investment risks, we've identified 2 warning signs with Chorus and understanding these should be part of your investment process.
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, but not derivative transactions.
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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.
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