Bullish Caledonia Investments Insiders Loaded Up On UK£1.60m Of Stock

Over the last year, a good number of insiders have significantly increased their holdings in Caledonia Investments Plc (LON:CLDN). This is encouraging because it indicates that insiders are more optimistic about the company's prospects.

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 Caledonia Investments

The Last 12 Months Of Insider Transactions At Caledonia Investments

Over the last year, we can see that the biggest insider purchase was by Non-Executive Director William Wyatt for UK£590k worth of shares, at about UK£34.76 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being UK£34.50). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.

Caledonia Investments insiders may have bought shares in the last year, but they didn't sell any. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!

Caledonia Investments is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.

Insiders At Caledonia Investments Have Bought Stock Recently

Over the last quarter, Caledonia Investments insiders have spent a meaningful amount on shares. Non-Executive Director William Wyatt spent UK£556k on stock, and there wasn't any selling. That shows some optimism about the company's future.

Does Caledonia Investments Boast High Insider Ownership?

Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 3.1% of Caledonia Investments shares, worth about UK£58m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

So What Do The Caledonia Investments Insider Transactions Indicate?

It's certainly positive to see the recent insider purchase. And an analysis of the transactions over the last year also gives us confidence. Insiders likely see value in Caledonia Investments shares, given these transactions (along with notable insider ownership of the company). Along with insider transactions, I recommend checking if Caledonia Investments is growing revenue. This free chart of historic revenue and earnings should make that easy.

Of course Caledonia Investments 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.