Insider Buying: The Cash Converters International Limited (ASX:CCV) Executive Deputy Chairman Just Bought 5.7% More Shares

Whilst it may not be a huge deal, we thought it was good to see that the Cash Converters International Limited (ASX:CCV) Executive Deputy Chairman, Peter Cumins, recently bought AU$120k worth of stock, for AU$0.24 per share. Although the purchase is not a big one, increasing their shareholding by only 5.7%, it can be interpreted as a good sign.

Check out our latest analysis for Cash Converters International

The Last 12 Months Of Insider Transactions At Cash Converters International

Notably, that recent purchase by Peter Cumins is the biggest insider purchase of Cash Converters International shares that we've seen in the last year. So it's clear an insider wanted to buy, at around the current price, which is AU$0.24. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Cash Converters International insiders decided to buy shares at close to current prices.

In the last twelve months Cash Converters International insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!

There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).

Insider Ownership

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. From our data, it seems that Cash Converters International insiders own 6.2% of the company, worth about AU$9.5m. But they may have an indirect interest through a corporate structure that we haven't picked up on. We do generally prefer see higher levels of insider ownership.

What Might The Insider Transactions At Cash Converters International Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. But we don't feel the same about the fact the company is making losses. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Cash Converters International insiders are reasonably well aligned, and optimistic for the future. 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. In terms of investment risks, we've identified 1 warning sign with Cash Converters International and understanding this should be part of your investment process.

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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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.