ClearView Wealth Insiders May Regret Not Buying More, Market Cap Hits AU$323m

ClearView Wealth Limited (ASX:CVW) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 12% resulting in a AU$35m addition to the company’s market value. In other words, the original AU$260.1k purchase is now worth AU$293.7k.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, 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 ClearView Wealth

In the last twelve months, the biggest single purchase by an insider was when MD, CEO & Executive Director Nadine Gooderick bought AU$180k worth of shares at a price of AU$0.45 per share. That implies that an insider found the current price of AU$0.50 per share to be enticing. Of course they may have changed their mind. But this suggests they are optimistic. 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 ClearView Wealth insiders decided to buy shares at close to current prices.

ClearView Wealth insiders may have bought shares in the last year, but they didn't sell any. 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!

See our latest analysis for ClearView Wealth

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.

ClearView Wealth Insiders Bought Stock Recently

It's good to see that ClearView Wealth insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought AU$260k worth of shares. This is a positive in our book as it implies some confidence.

Insider Ownership Of ClearView Wealth

Many investors like to check how much of a company is owned by insiders. We usually like to see fairly high levels of insider ownership. From looking at our data, insiders own AU$6.3m worth of ClearView Wealth stock, about 1.9% of the company. We prefer to see high levels of insider ownership.

So What Do The ClearView Wealth Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. On this analysis the only slight negative we see is the fairly low (overall) insider ownership; their transactions suggest that they are quite positive on ClearView Wealth stock. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Case in point: We've spotted 1 warning sign for ClearView Wealth you should be aware of.

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.