Whilst it may not be a huge deal, we thought it was good to see that the Candy Club Holdings Limited (ASX:CLB) Non-Executive Director, Chi Kan Tang, recently bought AU$127k worth of stock, for AU$0.097 per share. However, it only increased their shares held by 2.6%, and it wasn't a huge purchase by absolute value, either.
Candy Club Holdings Insider Transactions Over The Last Year
The Non-Executive Chairman James Baillieu made the biggest insider purchase in the last 12 months. That single transaction was for AU$1.7m worth of shares at a price of AU$0.22 each. That means that an insider was happy to buy shares at above the current price of AU$0.10. 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. To us, it's very important to consider the price insiders pay for shares. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Over the last year, we can see that insiders have bought 58.33m shares worth AU$9.4m. But they sold 1.25m shares for AU$225k. Overall, Candy Club Holdings insiders were net buyers during the last year. The average buy price was around AU$0.16. I'd consider this a positive as it suggests insiders see value at around the current price. 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!
Candy Club Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
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. Candy Club Holdings insiders own 46% of the company, currently worth about AU$17m based on the recent share price. This kind of significant ownership by insiders does generally increase the chance that the company is run in the interest of all shareholders.
So What Does This Data Suggest About Candy Club Holdings Insiders?
It is good to see the recent insider purchase. And the longer term insider transactions also give us confidence. However, we note that the company didn't make a profit over the last twelve months, which makes us cautious. Along with the high insider ownership, this analysis suggests that insiders are quite bullish about Candy Club Holdings. One for the watchlist, at least! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Candy Club Holdings. Our analysis shows 4 warning signs for Candy Club Holdings (1 makes us a bit uncomfortable!) and we strongly recommend you look at them before investing.
Of course Candy Club Holdings 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.
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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.