Advertisement
Canada markets open in 2 hours 27 minutes
  • S&P/TSX

    22,107.08
    +194.56 (+0.89%)
     
  • S&P 500

    5,248.49
    +44.91 (+0.86%)
     
  • DOW

    39,760.08
    +477.75 (+1.22%)
     
  • CAD/USD

    0.7355
    -0.0018 (-0.24%)
     
  • CRUDE OIL

    82.19
    +0.84 (+1.03%)
     
  • Bitcoin CAD

    96,196.62
    +829.75 (+0.87%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • GOLD FUTURES

    2,232.40
    +19.70 (+0.89%)
     
  • RUSSELL 2000

    2,114.35
    +44.19 (+2.13%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • NASDAQ futures

    18,501.75
    -2.00 (-0.01%)
     
  • VOLATILITY

    13.00
    +0.22 (+1.72%)
     
  • FTSE

    7,957.08
    +25.10 (+0.32%)
     
  • NIKKEI 225

    40,168.07
    -594.66 (-1.46%)
     
  • CAD/EUR

    0.6813
    +0.0008 (+0.12%)
     

Are Insiders Buying Camping World Holdings, Inc. (NYSE:CWH) Stock?

We've lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. The flip side of that is that there are more than a few examples of insiders dumping stock prior to a period of weak performance. So before you buy or sell Camping World Holdings, Inc. (NYSE:CWH), you may well want to know whether insiders have been buying or selling.

What Is Insider Selling?

It's quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.

ADVERTISEMENT

Insider transactions are not the most important thing when it comes to long-term investing. But logic dictates you should pay some attention to whether insiders are buying or selling shares. For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.

See our latest analysis for Camping World Holdings

Camping World Holdings Insider Transactions Over The Last Year

Chairman & CEO Marcus Lemonis made the biggest insider purchase in the last 12 months. That single transaction was for US$1.3m worth of shares at a price of US$13.27 each. That means that an insider was happy to buy shares at above the current price of US$9.45. 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. We always take careful note of the price insiders pay when purchasing shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months Camping World Holdings insiders were buying shares, but not selling. They paid about US$11.75 on average. This is nice to see since it implies that insiders might see value around current prices. You can see the insider transactions (by 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!

NYSE:CWH Recent Insider Trading, October 23rd 2019
NYSE:CWH Recent Insider Trading, October 23rd 2019

Camping World Holdings 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.

Camping World Holdings Insiders Bought Stock Recently

Over the last quarter, Camping World Holdings insiders have spent a meaningful amount on shares. Not only was there no selling that we can see, but they collectively bought US$477k worth of shares. This makes one think the business has some good points.

Does Camping World Holdings Boast High 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. Based on our data, Camping World Holdings insiders have about 0.5% of the stock, worth approximately US$3.7m. We prefer to see high levels of insider ownership.

So What Does This Data Suggest About Camping World Holdings Insiders?

The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Camping World Holdings insiders are expecting a bright future. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

But note: Camping World Holdings 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, but not derivative transactions.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. 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. Simply Wall St has no position in the stocks mentioned. Thank you for reading.