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Even if it's not a huge purchase, we think it was good to see that Stephan Nanninga, the Independent Member of Supervisory Board of Cabka N.V. (AMS:CABKA) recently shelled out €46k to buy stock, at €3.08 per share. Although the purchase is not a big one, increasing their shareholding by only 3.1%, it can be interpreted as a good sign.
See our latest analysis for Cabka
Cabka Insider Transactions Over The Last Year
Notably, that recent purchase by Independent Member of Supervisory Board Stephan Nanninga was not the only time they bought Cabka shares this year. They previously made an even bigger purchase of €57k worth of shares at a price of €5.34 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being €3.04). 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. To us, it's very important to consider the price insiders pay for shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price.
Cabka insiders may have bought shares in the last year, but they didn't sell any. They paid about €3.83 on average. This is nice to see since it implies that insiders might see value around current prices. 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!
There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying.
Does Cabka 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. Cabka insiders own 53% of the company, currently worth about €40m based on the recent share price. 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 Does This Data Suggest About Cabka Insiders?
It's certainly positive to see the recent insider purchases. And an analysis of the transactions over the last year also gives us confidence. But on the other hand, the company made a loss during the last year, which makes us a little cautious. When combined with notable insider ownership, these factors suggest Cabka insiders are well aligned, and quite possibly think the share price is too low. That's what I like to see! 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. To that end, you should learn about the 4 warning signs we've spotted with Cabka (including 1 which doesn't sit too well with us).