Investors who take an interest in City of London Investment Group PLC (LON:CLIG) should definitely note that the Independent Non-Executive Director, Rian Dartnell, recently paid UK£3.92 per share to buy UK£118k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 150%, potentially signalling some real optimism.
City of London Investment Group Insider Transactions Over The Last Year
In the last twelve months, the biggest single sale by an insider was when the Founder & Advisor, Barry Olliff, sold UK£504k worth of shares at a price of UK£4.58 per share. That means that an insider was selling shares at around the current price of UK£4.02. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. We note that this sale took place at around the current price, so it isn't a major concern, though it's hardly a good sign. The only individual insider seller over the last year was Barry Olliff.
In the last twelve months insiders purchased 47.74k shares for UK£183k. On the other hand they divested 169.39k shares, for UK£771k. Barry Olliff sold a total of 169.39k shares over the year at an average price of UK£4.55. The chart below shows insider transactions (by companies and individuals) over the last year. 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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Does City of London Investment Group Boast High Insider Ownership?
I like to look at how many shares insiders own in a company, to help inform my view of how aligned they are with insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that City of London Investment Group insiders own 5.5% of the company, worth about UK£11m. 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 City of London Investment Group Insiders?
It is good to see the recent insider purchase. On the other hand the transaction history, over the last year, isn't so positive. The more recent transactions are a positive, but City of London Investment Group insiders haven't shown the sustained enthusiasm that we look for, although they do own a decent number of shares, overall. So they seem pretty well aligned, overall. So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. Our analysis shows 2 warning signs for City of London Investment Group (1 is concerning!) and we strongly recommend you look at them before investing.
But note: City of London Investment Group 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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