Insiders Buying Credit Clear Might Wish They Invested More, Stock Gains 10%

Insiders who bought Credit Clear Limited (ASX:CCR) stock in the last 12 months were richly rewarded last week. The company's market value increased by AU$10m as a result of the stock's 10% gain over the same period. Put another way, the original AU$775.6k acquisition is now worth AU$1.19m.

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.

See our latest analysis for Credit Clear

Credit Clear Insider Transactions Over The Last Year

The insider Alexander Waislitz made the biggest insider purchase in the last 12 months. That single transaction was for AU$776k worth of shares at a price of AU$0.19 each. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.27. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.

You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

Credit Clear is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.

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. Credit Clear insiders own 43% of the company, currently worth about AU$48m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.

What Might The Insider Transactions At Credit Clear Tell Us?

The fact that there have been no Credit Clear insider transactions recently certainly doesn't bother us. But insiders have shown more of an appetite for the stock, over the last year. Judging from their transactions, and high insider ownership, Credit Clear insiders feel good about the company's future. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Be aware that Credit Clear is showing 3 warning signs in our investment analysis, and 1 of those shouldn't be ignored...

Of course Credit Clear 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 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.