Gary Kenneth Lawler Is The Independent Non-Executive Director of Champion Iron Limited (ASX:CIA) And They Just Picked Up 1.2% More Shares

By
Simply Wall St
Published
November 23, 2021
ASX:CIA
Source: Shutterstock

Even if it's not a huge purchase, we think it was good to see that Gary Kenneth Lawler, the Independent Non-Executive Director of Champion Iron Limited (ASX:CIA) recently shelled out AU$81k to buy stock, at AU$4.09 per share. However, it only increased their shares held by 1.2%, and it wasn't a huge purchase by absolute value, either.

See our latest analysis for Champion Iron

The Last 12 Months Of Insider Transactions At Champion Iron

Over the last year, we can see that the biggest insider sale was by the Executive Chairman, William O’Keeffe, for AU$11m worth of shares, at about AU$5.32 per share. While we don't usually like to see insider selling, it's more concerning if the sales take place at a lower price. The good news is that this large sale was at well above current price of AU$4.57. So it may not shed much light on insider confidence at current levels. The only individual insider seller over the last year was William O’Keeffe.

In the last twelve months insiders purchased 33.73k shares for AU$140k. But insiders sold 2.00m shares worth AU$11m. 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!

insider-trading-volume
ASX:CIA Insider Trading Volume November 23rd 2021

I will like Champion Iron better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership

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. It's great to see that Champion Iron insiders own 14% of the company, worth about AU$316m. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

So What Do The Champion Iron Insider Transactions Indicate?

It is good to see recent purchasing. However, the longer term transactions are not so encouraging. The high levels of insider ownership, and the recent buying by some insiders suggests they are well aligned and optimistic. While we like knowing 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. To that end, you should learn about the 4 warning signs we've spotted with Champion Iron (including 2 which shouldn't be ignored).

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, but not derivative transactions.

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