Bullish Clean Seas Seafood Insiders Rewarded As Their Investment Rises To AU$6.72m

Insiders who bought Clean Seas Seafood Limited (ASX:CSS) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$7.6m as a result of the stock's 15% gain over the same period. As a result, the stock they originally bought for AU$5.95m is now worth AU$6.72m.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Clean Seas Seafood

The Last 12 Months Of Insider Transactions At Clean Seas Seafood

Over the last year, we can see that the biggest insider purchase was by insider Anthony Hall for AU$4.3m worth of shares, at about AU$0.27 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.30. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.

While Clean Seas Seafood insiders bought shares during the last year, they didn't sell. 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).

Clean Seas Seafood Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Clean Seas Seafood. Specifically, insider Anthony Hall bought AU$5.9m worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

Insider Ownership Of Clean Seas Seafood

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Insiders own 15% of Clean Seas Seafood shares, worth about AU$8.9m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Clean Seas Seafood Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Clean Seas Seafood we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clean Seas Seafood. When we did our research, we found 4 warning signs for Clean Seas Seafood (1 is concerning!) that we believe deserve your full attention.

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.