In This Article:
Multiple insiders secured a larger position in Clairvest Group Inc. (TSE:CVG) shares over the last 12 months. This is reassuring as this suggests that insiders have increased optimism about the company's prospects.
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 Clairvest Group
Clairvest Group Insider Transactions Over The Last Year
The Independent Director G. Krediet made the biggest insider purchase in the last 12 months. That single transaction was for CA$1.8m worth of shares at a price of CA$70.54 each. So it's clear an insider wanted to buy, even at a higher price than the current share price (being CA$70.00). 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. In our view, the price an insider pays for shares is very important. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
Happily, we note that in the last year insiders paid CA$4.5m for 64.08k shares. But they sold 1.70k shares for CA$129k. In the last twelve months there was more buying than selling by Clairvest Group insiders. 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!
Clairvest Group is not the only stock that insiders are buying. For those who like to find small cap companies at attractive valuations, this free list of growing companies with recent insider purchasing, could be just the ticket.
Insiders At Clairvest Group Have Bought Stock Recently
It's good to see that Clairvest Group insiders have made notable investments in the company's shares. Not only was there no selling that we can see, but they collectively bought CA$357k worth of shares. This is a positive in our book as it implies some confidence.
Does Clairvest Group Boast High Insider Ownership?
Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Clairvest Group insiders own 56% of the company, currently worth about CA$563m based on the recent share price. Most shareholders would be happy to see this sort of insider ownership, since it suggests that management incentives are well aligned with other shareholders.