Clear Channel Outdoor Holdings Insider Buyers See Boost After Market Cap Rose US$93m

Clear Channel Outdoor Holdings, Inc. (NYSE:CCO) insiders who purchased shares in the last 12 months were richly rewarded last week. The stock climbed by 13% resulting in a US$93m addition to the company’s market value. In other words, the original US$38.8m purchase is now worth US$44.5m.

Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.

View our latest analysis for Clear Channel Outdoor Holdings

Clear Channel Outdoor Holdings Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider purchase was by insider Arturo Moreno for US$23m worth of shares, at about US$1.65 per share. That means that an insider was happy to buy shares at around the current price of US$1.69. 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. Happily, the Clear Channel Outdoor Holdings insider decided to buy shares at close to current prices. The only individual insider to buy over the last year was Arturo Moreno.

Arturo Moreno bought 26.34m shares over the last 12 months at an average price of US$1.47. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. By clicking on the graph below, you can see the precise details of each insider transaction!

There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.

Does Clear Channel Outdoor Holdings 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. We usually like to see fairly high levels of insider ownership. It appears that Clear Channel Outdoor Holdings insiders own 12% of the company, worth about US$97m. 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 Clear Channel Outdoor Holdings Insider Transactions Indicate?

There haven't been any insider transactions in the last three months -- that doesn't mean much. However, our analysis of transactions over the last year is heartening. Overall we don't see anything to make us think Clear Channel Outdoor Holdings insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Our analysis shows 2 warning signs for Clear Channel Outdoor Holdings (1 is a bit unpleasant!) and we strongly recommend you look at these before investing.

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 of direct interests only, but not derivative transactions or indirect interests.

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