Stock Analysis

Insiders who purchased Charter Hall Group (ASX:CHC) stock last year recover some losses which currently stand at AU$11k

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ASX:CHC
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Insiders who bought AU$171k worth of Charter Hall Group (ASX:CHC) stock in the last year recovered part of their losses as the stock rose by 4.1% last week. The purchase, however, has proven to be a pricey bet, with losses currently totalling AU$11k.

While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

Our analysis indicates that CHC is potentially undervalued!

Charter Hall Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Jacqueline Chow for AU$77k worth of shares, at about AU$15.30 per share. That means that an insider was happy to buy shares at above the current price of AU$13.95. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Charter Hall Group 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. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

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ASX:CHC Insider Trading Volume December 1st 2022

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

Insiders At Charter Hall Group Have Bought Stock Recently

There was some insider buying at Charter Hall Group over the last quarter. Independent Non-Executive Director Jacqueline Chow bought AU$62k worth of shares in that time. We like it when there are only buyers, and no sellers. But in this case the amount purchased means the recent transaction may not be very meaningful on its own.

Insider Ownership Of Charter Hall Group

I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. We usually like to see fairly high levels of insider ownership. Insiders own 1.2% of Charter Hall Group shares, worth about AU$82m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.

What Might The Insider Transactions At Charter Hall Group Tell Us?

It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. Given that insiders also own a fair bit of Charter Hall Group we think they are probably pretty confident of a bright future. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 1 warning sign for Charter Hall Group you should know about.

Of course Charter Hall Group may not be the best stock to buy. So you may wish to see this free collection of high quality 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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Find out whether Charter Hall Group is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

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