Have Insiders Sold City Lodge Hotels Shares Recently?

We note that the City Lodge Hotels Limited (JSE:CLH) CEO & Executive Director, Andrew Widegger, recently sold R932k worth of stock for R4.05 per share. On the bright side, that's just a small sale and only reduced their holding by 6.4%.

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City Lodge Hotels Insider Transactions Over The Last Year

In fact, the recent sale by Andrew Widegger was the biggest sale of City Lodge Hotels shares made by an insider individual in the last twelve months, according to our records. So what is clear is that an insider saw fit to sell at around the current price of R4.06. We generally don't like to see insider selling, but the lower the sale price, the more it concerns us. 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 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!

View our latest analysis for City Lodge Hotels

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Does City Lodge Hotels 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. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. From looking at our data, insiders own R22m worth of City Lodge Hotels stock, about 1.0% of the company. We do note, however, it is possible insiders have an indirect interest through a private company or other corporate structure. We consider this fairly low insider ownership.

What Might The Insider Transactions At City Lodge Hotels Tell Us?

An insider sold City Lodge Hotels shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. But it is good to see that City Lodge Hotels 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 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. Every company has risks, and we've spotted 1 warning sign for City Lodge Hotels you should know about.

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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.