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Generally, when a single insider buys stock, it is usually not a big deal. However, when several insiders are buying, like in the case of CLS Holdings plc (LON:CLI), it sends a favourable message to the company's shareholders.
While insider transactions are not the most important thing when it comes to long-term investing, logic dictates you should pay some attention to whether insiders are buying or selling shares.
See our latest analysis for CLS Holdings
CLS Holdings Insider Transactions Over The Last Year
In the last twelve months, the biggest single purchase by an insider was when CFO & Director Andrew Michael Kirkman bought UK£111k worth of shares at a price of UK£2.22 per share. That implies that an insider found the current price of UK£2.24 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. While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed. In this case we're pleased to report that the insider purchases were made at close to current prices.
While CLS Holdings insiders bought shares during the last year, they didn't sell. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of growing companies that insiders are buying.
CLS Holdings Insiders Bought Stock Recently
It's good to see that CLS Holdings insiders have made notable investments in the company's shares. CEO & Director Fredrik Widlund spent UK£47k on stock, and there wasn't any selling. This is a positive in our book as it implies some confidence.
Insider Ownership
Many investors like to check how much of a company is owned by 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. Insiders own 6.8% of CLS Holdings shares, worth about UK£62m. 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 Does This Data Suggest About CLS Holdings Insiders?
Our data shows a little insider buying, but no selling, in the last three months. That said, the purchases were not large. But insiders have shown more of an appetite for the stock, over the last year. Overall we don't see anything to make us think CLS Holdings insiders are doubting the company, and they do own shares. So while it's helpful to know what insiders are doing in terms of buying or selling, it's also helpful to know the risks that a particular company is facing. Every company has risks, and we've spotted 4 warning signs for CLS Holdings (of which 1 can't be ignored!) you should know about.