In This Article:
Quite a few insiders have dramatically grown their holdings in CRH plc (NYSE:CRH) over the past 12 months. An insider's optimism about the company's prospects is a positive sign.
While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether.
See our latest analysis for CRH
The Last 12 Months Of Insider Transactions At CRH
Over the last year, we can see that the biggest insider purchase was by Independent Non-Executive Director Richard Fearon for US$3.0m worth of shares, at about US$98.86 per share. That means that even when the share price was higher than US$97.75 (the recent price), an insider wanted to purchase shares. 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. 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.
Over the last year, we can see that insiders have bought 94.75k shares worth US$8.5m. But insiders sold 38.49k shares worth US$3.2m. Overall, CRH insiders were net buyers during the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!
CRH 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.
CRH Insiders Bought Stock Recently
Over the last three months, we've seen significant insider buying at CRH. Overall, three insiders shelled out US$4.1m for shares in the company -- and none sold. This is a positive in our book as it implies some confidence.
Insider Ownership Of CRH
For a common shareholder, it is worth checking how many shares are held by company insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that CRH insiders own 0.1% of the company, worth about US$70m. 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 Does This Data Suggest About CRH Insiders?
The recent insider purchases are heartening. And an analysis of the transactions over the last year also gives us confidence. When combined with notable insider ownership, these factors suggest CRH insiders are well aligned, and that they may think the share price is too low. While it's good to be aware of 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. You'd be interested to know, that we found 2 warning signs for CRH and we suggest you have a look.