Stock Analysis

Trade Alert: The Independent Director Of Comvita Limited (NZSE:CVT), Lucas Nicholas Bunt, Has Sold Some Shares Recently

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We note that the Comvita Limited (NZSE:CVT) Independent Director, Lucas Nicholas Bunt, recently sold NZ$101k worth of stock for NZ$3.35 per share. It might not be a huge sale, but it did reduce their holding size 43%, hardly encouraging.

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Comvita Insider Transactions Over The Last Year

Notably, that recent sale by Lucas Nicholas Bunt is the biggest insider sale of Comvita shares that we've seen in the last year. So what is clear is that an insider saw fit to sell at around the current price of NZ$3.31. While we don't usually like to see insider selling, it's more concerning if the sales take place 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.

Over the last year, we can see that insiders have bought 23.58k shares worth NZ$75k. But insiders sold 30.00k shares worth NZ$101k. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

NZSE:CVT Insider Trading Volume March 16th 2023

I will like Comvita better if I see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.

Insider Ownership Of Comvita

Many investors like to check how much of a company is owned by insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. Comvita insiders own about NZ$59m worth of shares. That equates to 25% of the company. 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 Comvita Tell Us?

An insider hasn't bought Comvita stock in the last three months, but there was some selling. Zooming out, the longer term picture doesn't give us much comfort. But it is good to see that Comvita is growing earnings. Insider ownership isn't particularly high, so this analysis makes us cautious about the company. We're in no rush to buy! So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. At Simply Wall St, we found 1 warning sign for Comvita that deserve your attention before buying any shares.

But note: Comvita 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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