The Independent Non-Executive Chairman of CountPlus Limited (ASX:CUP), Raymond Kellerman, Just Bought 11% More Shares

Potential CountPlus Limited (ASX:CUP) shareholders may wish to note that the Independent Non-Executive Chairman, Raymond Kellerman, recently bought AU$162k worth of stock, paying AU$1.20 for each share. That's a very solid buy in our book, and increased their holding by a noteworthy 11%.

See our latest analysis for CountPlus

CountPlus Insider Transactions Over The Last Year

In fact, the recent purchase by Raymond Kellerman was the biggest purchase of CountPlus shares made by an insider individual in the last twelve months, according to our records. That means that an insider was happy to buy shares at around the current price of AU$1.22. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.

In the last twelve months CountPlus insiders were buying shares, but not selling. Their average price was about AU$1.05. These transactions show that insiders have confidence to invest their own money in the stock, albeit at slightly below the recent price. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

CountPlus 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.

Does CountPlus Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From our data, it seems that CountPlus insiders own 9.2% of the company, worth about AU$12m. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At CountPlus Tell Us?

The recent insider purchases are heartening. We also take confidence from the longer term picture of insider transactions. When combined with notable insider ownership, these factors suggest CountPlus insiders are well aligned, and that they may think the share price is too low. 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. In terms of investment risks, we've identified 1 warning sign with CountPlus and understanding it 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. 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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