Yahoo Finance Insider Buying: The Conico Ltd (ASX:CNJ) Non-Executive Director Just Bought 2.5% More Shares
Even if it's not a huge purchase, we think it was good to see that James Richardson, the Non-Executive Director of Conico Ltd (ASX:CNJ) recently shelled out AU$51k to buy stock, at AU$0.057 per share. Although the purchase is not a big one, increasing their shareholding by only 2.5%, it can be interpreted as a good sign.
See our latest analysis for Conico
Conico Insider Transactions Over The Last Year
Notably, that recent purchase by James Richardson is the biggest insider purchase of Conico 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$0.06. 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
Conico insiders may have bought shares in the last year, but they didn't sell any. The average buy price was around AU$0.044. We don't deny that it is nice to see insiders buying stock in the company. But we must note that the investments were made at well below today's share price of AU$0.06. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction!
There are always plenty of stocks that insiders are buying. So if that suits your style you could check each stock one by one or you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insider Ownership of Conico
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. Insiders own 24% of Conico shares, worth about AU$13m. We've certainly seen higher levels of insider ownership elsewhere, but these holdings are enough to suggest alignment between insiders and the other shareholders.
So What Do The Conico Insider Transactions Indicate?
It's certainly positive to see the recent insider purchase. We also take confidence from the longer term picture of insider transactions. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Given that insiders also own a fair bit of Conico we think they are probably pretty confident of a bright future. While we like knowing what's going on with the insider's ownership and transactions, we make sure to also consider what risks are facing a stock before making any investment decision. Our analysis shows 6 warning signs for Conico (3 are significant!) and we strongly recommend you look at these before investing.
Of course Conico 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.
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.
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