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In the last year, multiple insiders have substantially increased their holdings of Cluey Ltd (ASX:CLU) stock, indicating that insiders' optimism about the company's prospects has increased.
Although we don't think shareholders should simply follow insider transactions, we would consider it foolish to ignore insider transactions altogether.
Check out our latest analysis for Cluey
Cluey Insider Transactions Over The Last Year
Notably, that recent purchase by Mark Rohald is the biggest insider purchase of Cluey shares that we've seen in the last year. That implies that an insider found the current price of AU$0.03 per share to be enticing. 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. If someone buys shares at well below current prices, it's a good sign on balance, but keep in mind they may no longer see value. Happily, the Cluey insiders decided to buy shares at close to current prices.
In the last twelve months Cluey insiders were buying shares, but not selling. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
Cluey is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Insiders At Cluey Have Bought Stock Recently
Over the last quarter, Cluey insiders have spent a meaningful amount on shares. Specifically, Co-Founder & Executive Deputy Chairman Mark Rohald bought AU$1m worth of shares in that time, and we didn't record any sales whatsoever. This makes one think the business has some good points.
Does Cluey Boast High Insider Ownership?
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. A high insider ownership often makes company leadership more mindful of shareholder interests. Insiders own 23% of Cluey shares, worth about AU$1.4m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The Cluey Insider Transactions Indicate?
The recent insider purchase is heartening. And an analysis of the transactions over the last year also gives us confidence. 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 Cluey we think they are probably pretty confident of a bright future. While it's good to be aware of 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. Every company has risks, and we've spotted 3 warning signs for Cluey you should know about.