Yahoo Finance Caledonia Investments Insiders Added UK£948.7k Of Stock To Their Holdings
In the last year, multiple insiders have substantially increased their holdings of Caledonia Investments Plc (LON:CLDN) stock, indicating that insiders' optimism about the company's prospects has increased.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for Caledonia Investments
The Last 12 Months Of Insider Transactions At Caledonia Investments
Over the last year, we can see that the biggest insider purchase was by Non-Executive Director William Wyatt for UK£590k worth of shares, at about UK£34.76 per share. That means that even when the share price was higher than UK£32.75 (the recent price), an insider wanted to purchase shares. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. To us, it's very important to consider the price insiders pay for shares. 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.
Over the last year, we can see that insiders have bought 27.49k shares worth UK£949k. But insiders sold 4.66k shares worth UK£161k. Overall, Caledonia Investments insiders were net buyers during the last year. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Caledonia Investments 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 Caledonia Investments Have Bought Stock Recently
Over the last quarter, Caledonia Investments insiders have spent a meaningful amount on shares. Specifically, Non-Executive Director William Wyatt bought UK£260k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.
Does Caledonia Investments Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. I reckon it's a good sign if insiders own a significant number of shares in the company. Caledonia Investments insiders own about UK£65m worth of shares. That equates to 3.6% of the company. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
What Might The Insider Transactions At Caledonia Investments Tell Us?
The recent insider purchase is heartening. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Caledonia Investments we think they are probably pretty confident of a bright future. Along with insider transactions, I recommend checking if Caledonia Investments is growing revenue. This free chart of historic revenue and earnings should make that easy.
But note: Caledonia Investments may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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 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.
