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The recent 14% drop in Calix Limited's (ASX:CXL) stock could come as a blow to insiders who purchased AU$926.4k worth of stock at an average buy price of AU$1.23 over the past 12 months. Insiders buy with the expectation to see their investments rise in value over a period of time. However, recent losses have rendered their above investment worth AU$482.0k which is not ideal.
While insider transactions are not the most important thing when it comes to long-term investing, we do think it is perfectly logical to keep tabs on what insiders are doing.
View our latest analysis for Calix
Calix Insider Transactions Over The Last Year
The insider Alexander Waislitz made the biggest insider purchase in the last 12 months. That single transaction was for AU$507k worth of shares at a price of AU$1.05 each. That means that even when the share price was higher than AU$0.64 (the recent price), an insider wanted to purchase shares. Their view may have changed since then, but at least it shows they felt optimistic at the time. To us, it's very important to consider the price insiders pay for shares. It is generally more encouraging if they paid above the current price, as it suggests they saw value, even at higher levels.
While Calix insiders bought shares during the last year, they didn't sell. They paid about AU$1.23 on average. These transactions suggest that insiders have considered the current price attractive. 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!
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.
Insider Ownership
For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. Calix insiders own about AU$25m worth of shares. That equates to 18% of the company. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.
What Might The Insider Transactions At Calix Tell Us?
It doesn't really mean much that no insider has traded Calix shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders own shares in Calix and we see no evidence to suggest they are worried about the future. 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 assist with this, we've discovered 3 warning signs that you should run your eye over to get a better picture of Calix.