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Even if it's not a huge purchase, we think it was good to see that James Baillieu, the Non-Executive Chairman of Candy Club Holdings Limited (ASX:CLB) recently shelled out AU$91k to buy stock, at AU$0.16 per share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
Candy Club Holdings Insider Transactions Over The Last Year
Notably, that recent purchase by Non-Executive Chairman James Baillieu was not the only time they bought Candy Club Holdings shares this year. Earlier in the year, they paid AU$0.18 per share in a AU$1.3m purchase. That means that an insider was happy to buy shares at above the current price of AU$0.16. It's very possible they regret the purchase, but it's more likely they are bullish about the company. We always take careful note of the price insiders pay when purchasing 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.
Candy Club Holdings insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.14 on average. We don't deny that it is nice to see insiders buying stock in the company. However, we do note that they were buying at significantly lower prices than today's share price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
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.
Does Candy Club Holdings Boast High Insider Ownership?
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. A high insider ownership often makes company leadership more mindful of shareholder interests. It's great to see that Candy Club Holdings insiders own 44% of the company, worth about AU$25m. I like to see this level of insider ownership, because it increases the chances that management are thinking about the best interests of shareholders.
So What Do The Candy Club Holdings Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. But we don't feel the same about the fact the company is making losses. Once you factor in the high insider ownership, it certainly seems like insiders are positive about Candy Club Holdings. Nice! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Candy Club Holdings. For instance, we've identified 4 warning signs for Candy Club Holdings (1 is significant) you should be aware of.
If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of interesting companies, that have HIGH return on equity 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.
This article by Simply Wall St is general in nature. 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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