Count Insiders May Regret Not Buying More, Market Cap Hits AU$267m
Count Limited (ASX:CUP) insiders who bought shares over the past year were rewarded handsomely last week. The stock rose 14%, resulting in a AU$34m rise in the company's market capitalisation, translating to a gain of 21% on their initial investment. As a result, their original purchase of AU$115.4k worth of stock is now worth AU$139.7k.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
The Last 12 Months Of Insider Transactions At Count
The Independent Non-Executive Chairman Raymond Kellerman made the biggest insider purchase in the last 12 months. That single transaction was for AU$105k worth of shares at a price of AU$1.05 each. Even though the purchase was made at a significantly lower price than the recent price (AU$1.27), we still think insider buying is a positive. Because it occurred at a lower valuation, it doesn't tell us much about whether insiders might find today's price attractive.
In the last twelve months Count insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Check out our latest analysis for Count
There are always plenty of stocks that insiders are buying. If investing in lesser known companies is your style, you could take a look at this free list of companies. (Hint: insiders have been buying them).
Insiders At Count Have Bought Stock Recently
Over the last three months, we've seen significant insider buying at Count. Not only was there no selling that we can see, but they collectively bought AU$115k worth of shares. This could be interpreted as suggesting a positive outlook.
Insider Ownership Of Count
Looking at the total insider shareholdings in a company can help to inform your view of whether they are well aligned with common shareholders. We usually like to see fairly high levels of insider ownership. Insiders own 6.7% of Count shares, worth about AU$18m. 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 Count Insider Transactions Indicate?
The recent insider purchases are heartening. And the longer term insider transactions also give us confidence. Insiders likely see value in Count shares, given these transactions (along with notable insider ownership of the company). In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Count. You'd be interested to know, that we found 2 warning signs for Count and we suggest you have a look.
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 of direct interests only, but not derivative transactions or indirect interests.
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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.