This Insider Has Just Sold Shares In Capral

We'd be surprised if Capral Limited (ASX:CAA) shareholders haven't noticed that the MD, CEO & Non Independent Director, Anthony Dragicevich, recently sold AU$592k worth of stock at AU$11.84 per share. However, the silver lining is that the sale only reduced their total holding by 8.4%, so we're hesitant to read anything much into it, on its own.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

Capral Insider Transactions Over The Last Year

In fact, the recent sale by Anthony Dragicevich was the biggest sale of Capral shares made by an insider individual in the last twelve months, according to our records. That means that even when the share price was below the current price of AU$12.46, an insider wanted to cash in some shares. As a general rule we consider it to be discouraging when insiders are selling below the current price, because it suggests they were happy with a lower valuation. Please do note, however, that sellers may have a variety of reasons for selling, so we don't know for sure what they think of the stock price. This single sale was just 8.4% of Anthony Dragicevich's stake.

Happily, we note that in the last year insiders paid AU$59k for 6.00k shares. But insiders sold 100.00k shares worth AU$1.1m. Anthony Dragicevich divested 100.00k shares over the last 12 months at an average price of AU$11.20. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

View our latest analysis for Capral

For those who like to find hidden gems this free list of small cap companies with recent insider purchasing, could be just the ticket.

Insider Ownership Of Capral

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. Our data indicates that Capral insiders own about AU$8.1m worth of shares (which is 4.0% of the company). Whilst better than nothing, we're not overly impressed by these holdings.

What Might The Insider Transactions At Capral Tell Us?

An insider sold Capral shares recently, but they didn't buy any. Despite some insider buying, the longer term picture doesn't make us feel much more positive. On the plus side, Capral makes money, and is growing profits. Insiders own relatively few shares in the company, and when you consider the sales, we're not particularly excited about the stock. So we'd only buy after very careful consideration. 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 Capral and we suggest you have a look.

But note: Capral 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.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.