Yahoo Finance Insider Buying: The Codan Limited (ASX:CDA) Independent Non-Executive Director Just Bought 94% More Shares
Investors who take an interest in Codan Limited (ASX:CDA) should definitely note that the Independent Non-Executive Director, Graeme Rodger Barclay, recently paid AU$3.84 per share to buy AU$230k worth of the stock. That certainly has us anticipating the best, especially since they thusly increased their own holding by 94%, potentially signalling some real optimism.
Check out our latest analysis for Codan
Codan Insider Transactions Over The Last Year
Notably, that recent purchase by Graeme Rodger Barclay is the biggest insider purchase of Codan shares that we've seen in the last year. That means that an insider was happy to buy shares at around the current price of AU$3.95. 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. In this case we're pleased to report that the insider purchases were made at close to current prices.
Codan insiders may have bought shares in the last year, but they didn't sell any. Their average price was about AU$5.51. These transactions suggest that insiders have considered the current price attractive. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Codan insiders own 44% of the company, worth about AU$314m. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
What Might The Insider Transactions At Codan Tell Us?
It's certainly positive to see the recent insider purchases. And the longer term insider transactions also give us confidence. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Codan. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Codan. When we did our research, we found 3 warning signs for Codan (2 shouldn't be ignored!) that we believe deserve your full attention.
But note: Codan 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.
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
