Credit Corp Group Limited (ASX:CCP) insiders got a good deal: Sold stock currently worth AU$30.80 at AU$33.29 over the past year

By
Simply Wall St
Published
October 18, 2021
ASX:CCP
Source: Shutterstock

Last week, Credit Corp Group Limited's (ASX:CCP) stock jumped 5.6%, but insiders who sold AU$333k worth of stock in over the past year are likely to be in a better position. Selling at an average price of AU$33.29, which is higher than the current price might have been the right call as holding on to stock would have meant their investment would be worth less now than it was at the time of sale.

While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

See our latest analysis for Credit Corp Group

Credit Corp Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the Independent Non-Executive Director, Donald McLay, for AU$333k worth of shares, at about AU$33.29 per share. So we know that an insider sold shares at around the present share price of AU$30.80. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. Given that the sale took place at around current prices, it makes us a little cautious but is hardly a major concern. Donald McLay was the only individual insider to sell shares in the last twelve months.

The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

insider-trading-volume
ASX:CCP Insider Trading Volume October 19th 2021

For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. It appears that Credit Corp Group insiders own 1.6% of the company, worth about AU$32m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Credit Corp Group Tell Us?

The fact that there have been no Credit Corp Group insider transactions recently certainly doesn't bother us. Our analysis of Credit Corp Group insider transactions leaves us cautious. But it's good to see that insiders own shares in 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. To assist with this, we've discovered 1 warning sign that you should run your eye over to get a better picture of Credit Corp Group.

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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