Executive Deputy Chairman of Cash Converters International Picks Up 5.1% More Stock

Even if it's not a huge purchase, we think it was good to see that Peter Cumins, the Executive Deputy Chairman of Cash Converters International Limited (ASX:CCV) recently shelled out AU$107k to buy stock, at AU$0.21 per share. However, it only increased their shares held by 5.1%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Cash Converters International

Cash Converters International Insider Transactions Over The Last Year

Notably, that recent purchase by Executive Deputy Chairman Peter Cumins was not the only time they bought Cash Converters International shares this year. Earlier in the year, they paid AU$0.24 per share in a AU$120k purchase. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.20). It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.

In the last twelve months insiders purchased 1.72m shares for AU$395k. On the other hand they divested 250.00k shares, for AU$60k. In the last twelve months there was more buying than selling by Cash Converters International insiders. 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!

Cash Converters International is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Our data indicates that Cash Converters International insiders own about AU$12m worth of shares (which is 9.5% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

So What Do The Cash Converters International Insider Transactions Indicate?

The recent insider purchase is heartening. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Insiders likely see value in Cash Converters International shares, given these transactions (along with notable insider ownership of 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. To that end, you should learn about the 2 warning signs we've spotted with Cash Converters International (including 1 which is a bit concerning).

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 of direct interests only, but not derivative transactions or indirect interests.

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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.