Stock Analysis

Global COO & Executive Director Laura Ruffles Just Sold A Bunch Of Shares In Corporate Travel Management Limited (ASX:CTD)

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ASX:CTD
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We wouldn't blame Corporate Travel Management Limited (ASX:CTD) shareholders if they were a little worried about the fact that Laura Ruffles, the Global COO & Executive Director recently netted about AU$2.8m selling shares at an average price of AU$20.02. Probably the most concerning element of the whole transaction is that the disposal amounted to 58% of their entire holding.

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Corporate Travel Management Insider Transactions Over The Last Year

In fact, the recent sale by Laura Ruffles was the biggest sale of Corporate Travel Management shares made by an insider individual in the last twelve months, according to our records. That means that an insider was selling shares at around the current price of AU$19.93. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. In this case, the big sale took place at around the current price, so it's not too bad (but it's still not a positive).

Happily, we note that in the last year insiders paid AU$129k for 9.22k shares. On the other hand they divested 137.53k shares, for AU$2.8m. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

insider-trading-volume
ASX:CTD Insider Trading Volume November 19th 2020

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Insider Ownership of Corporate Travel Management

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Corporate Travel Management insiders own 18% of the company, currently worth about AU$506m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.

So What Does This Data Suggest About Corporate Travel Management Insiders?

The insider sales have outweighed the insider buying, at Corporate Travel Management, in the last three months. Zooming out, the longer term picture doesn't give us much comfort. While insiders do own a lot of shares in the company (which is good), our analysis of their transactions doesn't make us feel confident about the company. 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. For example - Corporate Travel Management has 3 warning signs we think you should be aware of.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting 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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