Yahoo Finance COSOL Insiders Added AU$1.0m Of Stock To Their Holdings
Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of COSOL Limited (ASX:COS), it sends a favourable message to the company's shareholders.
Although we don't think shareholders should simply follow insider transactions, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for COSOL
The Last 12 Months Of Insider Transactions At COSOL
In the last twelve months, the biggest single purchase by an insider was when Non-Executive Chairman Geoffrey Lewis bought AU$500k worth of shares at a price of AU$0.76 per share. Although we like to see insider buying, we note that this large purchase was at significantly below the recent price of AU$0.95. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
While COSOL insiders bought shares during the last year, they didn't sell. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Does COSOL Boast High Insider Ownership?
For a common shareholder, it is worth checking how many shares are held by company 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. COSOL insiders own 50% of the company, currently worth about AU$84m based on the recent share price. 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 Do The COSOL 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. It would be great to see more insider buying, but overall it seems like COSOL insiders are reasonably well aligned (owning significant chunk of the company's shares) and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing COSOL. While conducting our analysis, we found that COSOL has 1 warning sign and it would be unwise to ignore this.
But note: COSOL 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 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.
