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Whilst it may not be a huge deal, we thought it was good to see that the Clover Corporation Limited (ASX:CLV) Independent Non-Executive Chairman, Rupert Harrington, recently bought AU$100k worth of stock, for AU$0.50 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 38%.
View our latest analysis for Clover
Clover Insider Transactions Over The Last Year
Notably, that recent purchase by Rupert Harrington is the biggest insider purchase of Clover shares that we've seen in the last year. That implies that an insider found the current price of AU$0.52 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. We do always like to see insider buying, but it is worth noting if those purchases were made at well below today's share price, as the discount to value may have narrowed with the rising price. In this case we're pleased to report that the insider purchases were made at close to current prices.
In the last twelve months Clover insiders were buying shares, but not selling. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. If you want to know exactly who sold, for how much, and when, simply click on the graph below!
Clover is not the only stock that insiders are buying. For those who like to find winning investments this free list of growing companies with recent insider purchasing, could be just the ticket.
Insider Ownership Of Clover
Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. From looking at our data, insiders own AU$3.3m worth of Clover stock, about 3.8% of the company. 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.
So What Do The Clover Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. We would certainly prefer see higher levels of insider ownership but analysis of the insider transactions suggests that Clover insiders are expecting a bright future. While we like knowing 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. For example - Clover has 2 warning signs we think you should be aware of.