Yahoo Finance Pleasing Signs As A Number Of Insiders Buy Channel Infrastructure NZ Stock
It is usually uneventful when a single insider buys stock. However, When quite a few insiders buy shares, as it happened in Channel Infrastructure NZ Limited's (NZSE:CHI) case, it's fantastic news for shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
Check out our latest analysis for Channel Infrastructure NZ
Channel Infrastructure NZ Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when Independent Chair James Miller bought NZ$130k worth of shares at a price of NZ$1.60 per share. That means that an insider was happy to buy shares at above the current price of NZ$1.57. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing 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.
In the last twelve months Channel Infrastructure NZ 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!
Channel Infrastructure NZ is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Have Channel Infrastructure NZ Insiders Traded Recently?
We've only seen a tiny insider purchase valued at NZ$1.1k, in the last three months. So it is hard to draw any conclusion about how insiders are feeling about the stock, from these recent trades.
Does Channel Infrastructure NZ 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. Insiders own 2.8% of Channel Infrastructure NZ shares, worth about NZ$17m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Channel Infrastructure NZ Insiders?
Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. On a brighter note, the transactions over the last year are encouraging. Insiders own shares in Channel Infrastructure NZ and we see no evidence to suggest they are worried about the future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 2 warning signs for Channel Infrastructure NZ you should be aware of.
But note: Channel Infrastructure NZ 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.
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.
