Bullish Corporate Travel Management Insiders Loaded Up On AU$1.49m Of Stock

In the last year, multiple insiders have substantially increased their holdings of Corporate Travel Management Limited (ASX:CTD) stock, indicating that insiders' optimism about the company's prospects has increased.

Although we don't think shareholders should simply follow insider transactions, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Corporate Travel Management

The Last 12 Months Of Insider Transactions At Corporate Travel Management

In the last twelve months, the biggest single purchase by an insider was when MD & Executive Director Jamie Pherous bought AU$1.4m worth of shares at a price of AU$15.98 per share. That means that an insider was happy to buy shares at above the current price of AU$12.27. It's very possible they regret the purchase, but it's more likely they are bullish about the company. 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.

Corporate Travel Management insiders may have bought shares in the last year, but they didn't sell any. 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!

Corporate Travel Management is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.

Does Corporate Travel Management Boast High Insider Ownership?

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Corporate Travel Management insiders own about AU$234m worth of shares (which is 13% of the company). This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

What Might The Insider Transactions At Corporate Travel Management Tell Us?

It doesn't really mean much that no insider has traded Corporate Travel Management shares in the last quarter. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Corporate Travel Management insiders feel good about the company's future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Corporate Travel Management. In terms of investment risks, we've identified 1 warning sign with Corporate Travel Management 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 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.