Need To Know: Credit Clear Limited (ASX:CCR) Insiders Have Been Selling Shares

We often see insiders buying up shares in companies that perform well over the long term. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we'll take a look at whether insiders have been buying or selling shares in Credit Clear Limited (ASX:CCR).

Do Insider Transactions Matter?

Most investors know that it is quite permissible for company leaders, such as directors of the board, to buy and sell stock in the company. However, rules govern insider transactions, and certain disclosures are required.

We don't think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Columbia University study found that 'insiders are more likely to engage in open market purchases of their own company’s stock when the firm is about to reveal new agreements with customers and suppliers'.

Check out our latest analysis for Credit Clear

Credit Clear Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the insider, Belinda Nixon, for AU$3.5m worth of shares, at about AU$0.69 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$0.55. So it may not tell us anything about how insiders feel about the current share price. The only individual insider seller over the last year was Belinda Nixon.

In the last twelve months insiders purchased 2.40m shares for AU$1.2m. But insiders sold 5.00m shares worth AU$3.5m. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. 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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Insiders at Credit Clear Have Bought Stock Recently

We saw some Credit Clear insider buying shares in the last three months. Independent Chairman Gerd Schenkel purchased AU$14k worth of shares in that period. 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.

Does Credit Clear Boast High Insider Ownership?

Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Credit Clear insiders own 40% of the company, worth about AU$49m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

What Might The Insider Transactions At Credit Clear Tell Us?

Our data shows a little insider buying, but no selling, in the last three months. Overall the buying isn't worth writing home about. Still, the insider transactions at Credit Clear in the last 12 months are not very heartening. The modest level of insider ownership is, at least, some comfort. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Credit Clear. You'd be interested to know, that we found 1 warning sign for Credit Clear and we suggest you have a look.

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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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