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Potential COG Financial Services Limited (ASX:COG) shareholders may wish to note that the Executive Director and Head of Finance Broking & Aggregation, Cameron McCullagh, recently bought AU$201k worth of stock, paying AU$1.00 for each share. Although the purchase is not a big one, by either a percentage standpoint or absolute value, it can be seen as a good sign.
View our latest analysis for COG Financial Services
The Last 12 Months Of Insider Transactions At COG Financial Services
Notably, that recent purchase by Executive Director and Head of Finance Broking & Aggregation Cameron McCullagh was not the only time they bought COG Financial Services shares this year. They previously made an even bigger purchase of AU$378k worth of shares at a price of AU$1.39 per share. That means that an insider was happy to buy shares at above the current price of AU$1.00. It's very possible they regret the purchase, but it's more likely they are bullish about the company. In our view, the price an insider pays for shares is very important. 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.
COG Financial Services insiders may have bought shares in the last year, but they didn't sell any. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!
COG Financial Services 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 COG Financial Services 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. We usually like to see fairly high levels of insider ownership. It appears that COG Financial Services insiders own 25% of the company, worth about AU$48m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.
So What Do The COG Financial Services Insider Transactions Indicate?
It is good to see recent purchasing. And the longer term insider transactions also give us confidence. Insiders likely see value in COG Financial Services shares, given these transactions (along with notable insider ownership of the company). So these insider transactions can help us build a thesis about the stock, but it's also worthwhile knowing the risks facing this company. To help with this, we've discovered 3 warning signs (1 doesn't sit too well with us!) that you ought to be aware of before buying any shares in COG Financial Services.