Yahoo Finance Co-Founder & Non Executive Director Walter Pisciotta Just Bought 3.4% More Shares In carsales.com Ltd (ASX:CAR)
Those following along with carsales.com Ltd (ASX:CAR) will no doubt be intrigued by the recent purchase of shares by Walter Pisciotta, Co-Founder & Non Executive Director of the company, who spent a stonking AU$5.0m on stock at an average price of AU$17.75. While that only increased their holding size by 3.4%, it is still a big swing by our standards.
See our latest analysis for carsales.com
carsales.com Insider Transactions Over The Last Year
Notably, that recent purchase by Walter Pisciotta is the biggest insider purchase of carsales.com shares that we've seen in the last year. Even though the purchase was made at a significantly lower price than the recent price (AU$19.93), we still think insider buying is a positive. While it does suggest insiders consider the stock undervalued at lower prices, this transaction doesn't tell us much about what they think of current prices.
In the last twelve months insiders purchased 420.02k shares for AU$7.5m. On the other hand they divested 60.00k shares, for AU$1.5m. Overall, carsales.com insiders were net buyers during the last year. You can see a visual depiction of insider transactions (by companies and individuals) over the last 12 months, below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
carsales.com is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insider Ownership of carsales.com
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. carsales.com insiders own about AU$320m worth of shares (which is 5.7% of the company). Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.
So What Does This Data Suggest About carsales.com Insiders?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about carsales.com. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing carsales.com. For example - carsales.com has 1 warning sign we think you should be aware of.
Of course carsales.com may not be the best stock to buy. So you may wish to see this free collection of high quality companies.
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.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
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.
Join A Paid User Research Session
You’ll receive a US$30 Amazon Gift card for 1 hour of your time while helping us build better investing tools for the individual investors like yourself. Sign up here
