Insiders sitting comfortably on a AU$23k profit after buying Centuria Capital Group (ASX:CNI) stock worth AU$4.5m last year

Insiders who purchased Centuria Capital Group (ASX:CNI) shares in the past 12 months are unlikely to be deeply impacted by the stock's 3.1% decline over the past week. After taking the recent loss into consideration, the AU$4.5m worth of stock they bought is now worth AU$4.5m, indicating that their investment yielded a positive return.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, we do think it is perfectly logical to keep tabs on what insiders are doing.

Check out our latest analysis for Centuria Capital Group

Centuria Capital Group Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by Joint CEO & Executive Director Jason Huljich for AU$3.3m worth of shares, at about AU$2.65 per share. So it's clear an insider wanted to buy, at around the current price, which is AU$2.78. While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. The good news for Centuria Capital Group share holders is that insiders were buying at near the current price.

While Centuria Capital Group insiders bought shares during the last year, they didn't sell. 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!

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.

Centuria Capital Group Insiders Bought Stock Recently

There was some insider buying at Centuria Capital Group over the last quarter. Independent Non Executive Chairman Garry Charny purchased AU$29k worth of shares in that period. It's great to see that insiders are only buying, not selling. But the amount invested in the last three months isn't enough for us too put much weight on it, as a single factor.

Does Centuria Capital Group Boast High Insider Ownership?

For a common shareholder, it is worth checking how many shares are held by company 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. It's great to see that Centuria Capital Group insiders own 6.7% of the company, worth about AU$148m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.

What Might The Insider Transactions At Centuria Capital Group Tell Us?

Insider purchases may have been minimal, in the last three months, but there was no selling at all. That said, the purchases were not large. However, our analysis of transactions over the last year is heartening. Judging from their transactions, and high insider ownership, Centuria Capital Group insiders feel good about the company's 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. In terms of investment risks, we've identified 3 warning signs with Centuria Capital Group and understanding these should be part of your investment process.

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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, but not derivative transactions.

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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.