Challenger Insider Lowered Holding By 16% During Last Year

Viewing insider transactions for Challenger Limited's (ASX:CGF ) over the last year, we see that insiders were net sellers. This means that a larger number of shares were sold by insiders in relation to shares purchased.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Check out our latest analysis for Challenger

The Last 12 Months Of Insider Transactions At Challenger

Over the last year, we can see that the biggest insider sale was by the MD, CEO & Director, Nicolas Hamilton, for AU$605k worth of shares, at about AU$6.22 per share. That means that an insider was selling shares at around the current price of AU$6.13. 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). Nicolas Hamilton was the only individual insider to sell shares in the last twelve months.

Over the last year, we can see that insiders have bought 21.56k shares worth AU$130k. But they sold 187.33k shares for AU$1.2m. Nicolas Hamilton divested 187.33k shares over the last 12 months at an average price of AU$6.41. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: Most of them are flying under the radar).

Challenger Insiders Bought Stock Recently

Over the last three months, we've seen a bit of insider buying at Challenger. Independent Non-Executive Chairman Duncan West shelled out AU$80k for shares in that time. It's great to see that insiders are only buying, not selling. However, in this case the amount invested recently is quite small.

Does Challenger Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Based on our data, Challenger insiders have about 0.1% of the stock, worth approximately AU$5.8m. We prefer to see high levels of insider ownership.

What Might The Insider Transactions At Challenger Tell Us?

It's certainly positive to see the recent insider purchase. However, the longer term transactions are not so encouraging. We're not thrilled with the relatively low insider ownership and the longer term transaction history. But we like the recent purchasing. While it's good to be aware of 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. You'd be interested to know, that we found 3 warning signs for Challenger and we suggest you have a look.

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 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.