Yahoo Finance Read This Before Selling Clean TeQ Holdings Limited (ASX:CLQ) Shares
We’ve lost count of how many times insiders have accumulated shares in a company that goes on to improve markedly. Unfortunately, there are also plenty of examples of share prices declining precipitously after insiders have sold shares. So we’ll take a look at whether insiders have been buying or selling shares in Clean TeQ Holdings Limited (ASX:CLQ).
What Is Insider Buying?
It’s quite normal to see company insiders, such as board members, trading in company stock, from time to time. However, rules govern insider transactions, and certain disclosures are required.
We don’t think shareholders should simply follow insider transactions. But it is perfectly logical to keep tabs on what insiders are doing. For example, a Harvard University study found that ‘insider purchases earn abnormal returns of more than 6% per year.’
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Clean TeQ Holdings Insider Transactions Over The Last Year
Over the last year, we can see that the biggest insider purchase was by Co-Chairman Robert Friedland for AU$1.3m worth of shares, at about AU$0.92 per share. That means that even when the share price was higher, an insider wanted to purchase shares. 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. It’s not at all bad to see insiders buy shares at or above current prices.
In the last twelve months insiders paid AU$2.0m for 2.54m shares purchased. Overall, Clean TeQ Holdings insiders were net buyers last year. They paid about AU$0.81 on average. This is nice to see since it implies that insiders might see value around current prices (around AU$0.45). The chart below shows insider transactions (by individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
Clean TeQ Holdings is not the only stock insiders are buying. So take a peek at this free list of growing companies with insider buying.
Insiders at Clean TeQ Holdings Have Bought Stock Recently
Over the last quarter, Clean TeQ Holdings insiders have spent a meaningful amount on shares. Overall, 2 insiders shelled out AU$171k for shares in the company — and none sold. This makes one think the business has some good points.
Insider Ownership of Clean TeQ Holdings
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it’s a good sign if insiders own a significant number of shares in the company. Clean TeQ Holdings insiders own about AU$83m worth of shares. That equates to 24% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
So What Does This Data Suggest About Clean TeQ Holdings Insiders?
It is good to see recent purchasing. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Clean TeQ Holdings insiders are well aligned, and that they may think the share price is too low. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
