In This Article:
Even if it's not a huge purchase, we think it was good to see that Rupert Harrington, the Independent Non-Executive Chairman of Clover Corporation Limited (ASX:CLV) recently shelled out AU$88k to buy stock, at AU$0.44 per share. While we're hesitant to get too excited about a purchase of that size, we do note it increased their holding by a solid 26%.
View our latest analysis for Clover
The Last 12 Months Of Insider Transactions At Clover
In fact, the recent purchase by Independent Non-Executive Chairman Rupert Harrington was not their only acquisition of Clover shares this year. They previously made an even bigger purchase of AU$100k worth of shares at a price of AU$0.50 per share. That means that an insider was happy to buy shares at above the current price of AU$0.42. 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. Generally speaking, it catches our eye when insiders have purchased shares at above current prices, as it suggests they believed the shares were worth buying, even at a higher price.
Clover insiders may have bought shares in the last year, but they didn't sell any. 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!
Clover is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying.
Does Clover Boast High 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. Based on our data, Clover insiders have about 3.7% of the stock, worth approximately AU$2.6m. However, it's possible that insiders might have an indirect interest through a more complex structure. We prefer to see high levels of insider ownership.
What Might The Insider Transactions At Clover Tell Us?
It's certainly positive to see the recent insider purchases. We also take confidence from the longer term picture of insider transactions. While the overall levels of insider ownership are below what we'd like to see, the history of transactions imply that Clover insiders are reasonably well aligned, and optimistic for the future. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clover. You'd be interested to know, that we found 2 warning signs for Clover and we suggest you have a look.