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Michael Stanley Is The Co-Founder of Cairn Homes plc (LON:CRN) And Just Spent €91k On Shares
Investors who take an interest in Cairn Homes plc (LON:CRN) should definitely note that the Co-Founder, Michael Stanley, recently paid UK£0.89 per share to buy UK£91k worth of the stock. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Check out our latest analysis for Cairn Homes
The Last 12 Months Of Insider Transactions At Cairn Homes
Over the last year, we can see that the biggest insider sale was by the Co-Founder & Non-Executive Director, Alan McIntosh, for UK£8.0m worth of shares, at about UK£0.84 per share. That means that even when the share price was below the current price of UK£0.91, an insider wanted to cash in some shares. When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. It is worth noting that this sale was only 24% of Alan McIntosh's holding.
In total, Cairn Homes insiders sold more than they bought over the last year. 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!
If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).
Insider Ownership Of Cairn Homes
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. Insiders own 6.6% of Cairn Homes shares, worth about UK£41m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Does This Data Suggest About Cairn Homes Insiders?
It is good to see the recent insider purchase. But we can't say the same for the transactions over the last 12 months. We don't take much heart from transactions by Cairn Homes insiders over the last year. But they own a reasonable amount of the company, and there was some buying recently. Overall they seem reasonably aligned. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. For example - Cairn Homes has 1 warning sign we think you should be aware of.
But note: Cairn Homes may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE 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.
Cairn Homes plc operates as a homebuilder in Ireland.
Very undervalued with flawless balance sheet and pays a dividend.