Trade Alert: The Independent Non-Executive Chairman Of CountPlus Limited (ASX:CUP), Raymond Kellerman, Has Just Spent AU$69k Buying 5.7% More Shares

Even if it's not a huge purchase, we think it was good to see that Raymond Kellerman, the Independent Non-Executive Chairman of CountPlus Limited (ASX:CUP) recently shelled out AU$69k to buy stock, at AU$1.06 per share. Although the purchase is not a big one, increasing their shareholding by only 5.7%, it can be interpreted as a good sign.

Check out our latest analysis for CountPlus

The Last 12 Months Of Insider Transactions At CountPlus

Notably, that recent purchase by Raymond Kellerman is the biggest insider purchase of CountPlus shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$1.10. That means they have been optimistic about the company in the past, though they may have changed their mind. 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.

While CountPlus insiders bought shares during the last year, they didn't sell. 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!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

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. Insiders own 9.1% of CountPlus shares, worth about AU$11m, according to our data. Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The CountPlus Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in CountPlus shares, given these transactions (along with notable insider ownership of the company). So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. For instance, we've identified 4 warning signs for CountPlus (1 doesn't sit too well with us) you should be aware of.

Of course CountPlus 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.

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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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