Stock Analysis

Have Insiders Sold Corporate Travel Management Limited (ASX:CTD) Shares Recently?

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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 Jamie Pherous, the MD & Executive Director recently netted about AU$32m selling shares at an average price of AU$21.00. However, that sale only accounted for 7.2% of their holding, so arguably it doesn't say much about their conviction.

See our latest analysis for Corporate Travel Management

Corporate Travel Management Insider Transactions Over The Last Year

Notably, that recent sale by Jamie Pherous is the biggest insider sale of Corporate Travel Management shares that we've seen in the last year. That means that an insider was selling shares at around the current price of AU$21.00. 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$114k for 8.22k shares. On the other hand they divested 1.64m shares, for AU$34m. All up, insiders sold more shares in Corporate Travel Management than they bought, over the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

ASX:CTD Insider Trading Volume March 17th 2021

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Insider Ownership of Corporate Travel Management

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. Corporate Travel Management insiders own about AU$560m worth of shares (which is 18% 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?

An insider sold Corporate Travel Management shares recently, but they didn't buy any. And our longer term analysis of insider transactions didn't bring confidence, either. The company boasts high insider ownership, but we're a little hesitant, given the history of share sales. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Corporate Travel Management. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Corporate Travel Management.

But note: Corporate Travel Management 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, but not derivative transactions.

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