Insider Stock Buying Reaches UK£689.1k On Caledonia Investments

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 insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.

View our latest analysis for Caledonia Investments

Caledonia Investments Insider Transactions Over The Last Year

In the last twelve months, the biggest single purchase by an insider was when Non-Executive Director William Wyatt bought UK£590k worth of shares at a price of UK£34.76 per share. That implies that an insider found the current price of UK£35.70 per share to be enticing. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. Happily, the Caledonia Investments insiders decided to buy shares at close to current prices.

In the last twelve months insiders purchased 19.82k shares for UK£689k. But they sold 4.66k shares for UK£161k. In the last twelve months there was more buying than selling by Caledonia Investments insiders. 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 insiders are buying. So take a peek at this free list of growing companies with insider buying.

Caledonia Investments Insiders Bought Stock Recently

Over the last three months, we've seen significant insider buying at Caledonia Investments. In total, insiders bought UK£689k worth of shares in that time, and we didn't record any sales whatsoever. This could be interpreted as suggesting a positive outlook.

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. A high insider ownership often makes company leadership more mindful of shareholder interests. Caledonia Investments insiders own about UK£70m worth of shares. That equates to 3.6% of the company. 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 Do The Caledonia Investments Insider Transactions Indicate?

It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Given that insiders also own a fair bit of Caledonia Investments we think they are probably pretty confident of a bright future. To put this in context, take a look at how a company has performed in the past. You can access this detailed graph of past earnings, revenue and cash flow.

But note: Caledonia Investments 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 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.