Even if it’s not a huge purchase, we think it was good to see that Paul Everingham, the Non-Executive Director of Cirrus Networks Holdings Limited (ASX:CNW) recently shelled out AU$111k to buy stock, at AU$0.023 per share. That purchase might not be huge but it did increase their holding by 37%.
The Last 12 Months Of Insider Transactions At Cirrus Networks Holdings
Notably, that recent purchase by Non-Executive Director Paul Everingham was not the only time they bought Cirrus Networks Holdings shares this year. They previously made an even bigger purchase of AU$201k worth of shares at a price of AU$0.04 per share. That means that even when the share price was higher than AU$0.025 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. We always take careful note of the price insiders pay when purchasing shares. It is encouraging to see an insider paid above the current price for shares, as it suggests they saw value, even at higher levels. Paul Everingham was the only individual insider to buy over the year.
Paul Everingham purchased 12.76m shares over the year. The average price per share was AU$0.034. You can see a visual depiction of insider transactions (by 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!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Many investors like to check how much of a company is owned by insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. It appears that Cirrus Networks Holdings insiders own 26% of the company, worth about AU$6.0m. 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 Cirrus Networks Holdings 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 Cirrus Networks Holdings 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. For example – Cirrus Networks Holdings has 5 warning signs we think you should be aware of.
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.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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