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Trade Alert: The Independent Chairman of the Board Of Computershare Limited (ASX:CPU), Simon Jones, Has Just Spent US$261k Buying 75% More Shares

Simply Wall St

Investors who take an interest in Computershare Limited (ASX:CPU) should definitely note that the Independent Chairman of the Board, Simon Jones, recently paid AU$13.03 per share to buy AU$261k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 75%, potentially signalling some real optimism.

Check out our latest analysis for Computershare

Computershare Insider Transactions Over The Last Year

The Non-Executive Director Christopher Morris made the biggest insider purchase in the last 12 months. That single transaction was for AU$11m worth of shares at a price of AU$10.77 each. That implies that an insider found the current price of AU$13.46 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Computershare insiders decided to buy shares at close to current prices.

In the last twelve months Computershare insiders were buying shares, but not selling. 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!

insider-trading-volume
insider-trading-volume

Computershare 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

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. Computershare insiders own 10% of the company, currently worth about AU$748m based on the recent share price. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

So What Do The Computershare Insider Transactions Indicate?

It is good to see recent purchasing. We also take confidence from the longer term picture of insider transactions. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Computershare. That's what I like to see! While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. To assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Computershare.

Of course Computershare 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com.