Insider Buyers Lose AU$169k As Calmer Co International Sheds AU$3.0m

The recent 33% drop in The Calmer Co International Limited's (ASX:CCO) stock could come as a blow to insiders who purchased AU$320.9k worth of stock at an average buy price of AU$0.0042 over the past 12 months. This is not good as insiders invest based on expectations that their money will appreciate over time. However, as a result of recent losses, their original investment is now worth only AU$151.7k.

Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.

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The Last 12 Months Of Insider Transactions At Calmer Co International

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman of the Board John Homewood bought AU$80k worth of shares at a price of AU$0.008 per share. That means that an insider was happy to buy shares at above the current price of AU$0.002. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing shares. 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.

Over the last year, we can see that insiders have bought 75.83m shares worth AU$321k. But insiders sold 9.74m shares worth AU$73k. In total, Calmer Co International insiders bought more than they sold over the last year. Their average price was about AU$0.0042. I'd consider this a positive as it suggests insiders see value at around the current price. 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!

See our latest analysis for Calmer Co International

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Calmer Co International Insiders Bought Stock Recently

Over the last quarter, Calmer Co International insiders have spent a meaningful amount on shares. In total, insiders bought AU$96k worth of shares in that time, and we didn't record any sales whatsoever. That shows some optimism about the company's future.

Insider Ownership Of Calmer Co International

Many investors like to check how much of a company is owned by 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. Calmer Co International insiders own about AU$1.0m worth of shares. That equates to 17% of the company. 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 Calmer Co International Tell Us?

It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Calmer Co International 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 Calmer Co International. Our analysis shows 5 warning signs for Calmer Co International (4 are significant!) and we strongly recommend you look at them before investing.

But note: Calmer Co International may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.