Investors who take an interest in Clarkson PLC (LON:CKN) should definitely note that the Non-Executive Chairman, William Gennydd Thomas, recently paid UK£27.52 per share to buy UK£100k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 174%, potentially signalling some real optimism.
The Last 12 Months Of Insider Transactions At Clarkson
The Independent Non-Executive Director Laurence Hollingworth made the biggest insider purchase in the last 12 months. That single transaction was for UK£112k worth of shares at a price of UK£22.30 each. That means that an insider was happy to buy shares at around the current price of UK£27.50. That means they have been optimistic about the company in the past, though they may have changed their mind. 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. The good news for Clarkson share holders is that insiders were buying at near the current price.
Over the last year, we can see that insiders have bought 8.63k shares worth UK£211k. But insiders sold 3.09k shares worth UK£72k. In the last twelve months there was more buying than selling by Clarkson insiders. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Clarkson is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership of Clarkson
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. Insiders own 2.2% of Clarkson shares, worth about UK£18m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Clarkson Tell Us?
It's certainly positive to see the recent insider purchase. And the longer term insider transactions also give us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. Given that insiders also own a fair bit of Clarkson we think they are probably pretty confident of a bright future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clarkson. While conducting our analysis, we found that Clarkson has 1 warning sign and it would be unwise to ignore this.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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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